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Which Web3 companies in Hong Kong are worthy of attention

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Hong Kong Web3 Map.

On October 31, the Financial Secretary of Hong Kong (Financial Services and the Treasury Bureau) officially released the "Policy Declaration on the Development of Virtual Assets in Hong Kong" (hereinafter referred to as the "Declaration"), with a view to developing in Hong Kong The vigorous virtual asset industry and ecosystem clarified the Hong Kong government's policy stance, regulatory guidelines, and pilot plans, which undoubtedly gave practitioners great confidence and encouragement in the development of Web3 in Hong Kong.

However, some people think that the "Declaration" is still implemented under the conservative and prudent Hong Kong Although the New Deal has a strong value of innovation and openness, it has opened a crack for the door closed by Web3 before, but it is still more tentative than open.

As in the Manifesto, the term "virtual asset" is used instead of virtual currency (Cryptocurrency), although the definition is not accurately expressed, the meaning of virtual assets should be different from or greater than that of virtual currency. In addition, there are expressions that use "DLT" (distributed ledger technology) instead of "decentralization", which means that it is still technology-oriented rather than a concept.

Earlier, Hong Kong has successfully bred BitMEX, FTX, Crypto.Com and many other The leading organization in the encryption industry. At that time, BitMEX even leased the forty-fifth floor of the Changjiang Group Center, replacing the original Barclays Capital and announcing that the new world has come. And from 2018 to 2019, Asia Crypto Week, Asia's top encryption summit, was held in Hong Kong, which once again emphasized Hong Kong's status in the encryption field.

But later, BitMEX and Crypto.Com successively chose Singapore as their foothold, and FTX has also I left for the Bahamas last year. Today, there are not many well-known encryption companies still in Hong Kong. So what is the current status of Web3 development in Hong Kong, and what Web3 companies are worthy of attention?

Global Fast Track 2022

The Global Fast Track is a global fast track organized by InvestHK, bringing together global innovative financial technology companies. These companies already have business clients in their home markets and beyond, and can use their business solutions to connect with regional businesses and investors. And The Global Fast Track will help these companies achieve greater viability, visibility and scalability in Hong Kong, Asia and beyond.

BlockBeats has counted 118 outstanding innovative financial technology companies in the Global Fast Track 2022, with Taking a peek at the current Web3 development status in Hong Kong, found that there are indeed not many Web3 projects born in Hong Kong (or headquartered in Hong Kong), mainly the following 8, accounting for only 6.8%.

HashKey Group

HashKey Group is an end-to-end digital asset financial services group in Asia, headquartered in Hong Kong, with offices in Singapore and Tokyo It has a business that provides new investment opportunities and solutions for institutions, family offices, funds and professional investors in the digital asset and blockchain ecosystem.

Everest Ventures Group

Everest Ventures Group is called EVG for short, and its investment portfolio includes Animoca Brands, The Sandbox, Flow public chain, Kraken, etc. Many well-known projects.

Token Bay Capital

Token Bay Capital is an early-stage venture capital fund in Hong Kong that accepts funds from professional investors, mainly providing investment in digital assets and blocks Diversification of portfolios of chain-related companies. Previously, Token Bay Capital participated in Yuga Labs, the parent company of NFT project BAYC.

Aspen Digital

Aspen Digital is a virtual asset management platform located in Hong Kong, which aims to provide individual or institutional users with the ability to build and manage digital Asset Strategy's technology and expertise, helping it access the best and most unique products in the encryption industry, has received investments from Everest Ventures Group and Token Bay Capital.

Cell Rising Capital

Cell Rising Capital is an early-stage venture capital fund in Hong Kong, investing in companies that aim to change the way traditional industries work and become future pioneers , and help these startups grow and thrive quickly. Previously, Cell Rising Capital invested in Animoca Brands.

UVECON

UVECON is a Hong Kong-based venture capital studio, accelerator and consulting firm, investing in financial technology, blockchain , SaaS, and e-commerce.

ParticleX

ParticleX is also an accelerator in Hong Kong, aiming to accelerate the focus on blockchain, big data, artificial intelligence (AI), Internet of Things (IoT), robotics, and the growth rate of tech startups.

Global Digital MOJO

Global Digital MOJO (formerly known as Asia Digital MOJO) is an international digital strategy and production agency established in Hong Kong in 2009 , with 6 studios around the world, aims to provide digital transformation services and create AI Metaverse products for professionals.

Newport Controversy

It can be seen that in just two years, Hong Kong seems to have fallen from the altar from the former Asian encryption center, brain drain, project migration, and ecological failure, but these are being injected into Singapore.

Indeed, the number of Web3 companies in Singapore is gradually increasing, especially this year’s Token2049 After the event, many Chinese began to have a simple intuition that Web3 startups would go to Singapore. However, from another point of view, it seems that Xingang’s conclusions about the Asian encryption center have not yet settled. Although Singapore has become an important Web3 development base in Asia, not all projects are suitable for Singapore.

For example, Singapore's Monetary Authority MAS clearly pointed out that the unfettered retail public will Take a pretty hard line, because retail investors shouldn't be dabbling in cryptocurrencies. In Hong Kong, regulators are considering allowing retail investors to invest directly in crypto-assets, and the SFC will launch a public consultation on the appropriate extent of retail investors’ ability to buy and sell virtual assets under the new licensing regime.

Therefore, choosing which area to start a business is a very complicated issue, which must be based on specific projectsbusiness essence, compliance risk, team background, industry resources and product features, etc. Judgment based on multiple factors.

For entrepreneurs with Chinese background, the more open Web3 market in Hong Kong in the future will gradually A stable regulatory system, sound infrastructure, and free flow of capital and information may still help Hong Kong replace Singapore as the best choice for Chinese Web3 entrepreneurship.

The release of the Hong Kong "Declaration" also makes Web3 tracks such as Virtual Asset Transaction, NFT, Metaverse, GameFi, crypto fund projects, in the future business division, financing structure, team distribution, etc. The question has one more option.

Virtual asset trading and management

In general, Hong Kong currently has three regulatory agencies for virtual assets (cryptocurrency, etc.) and transactions:Hong Kong Securities and Futures Supervision Committee (SFC), the Financial Services and the Treasury Bureau (the Treasury Bureau) and the Hong Kong Monetary Authority (the HKMA).

Among them, SFC SFC's regulatory goals include: maintaining and promoting the fairness, efficiency, competitiveness, transparency and order of the securities and futures industry; minimizing criminal and misconduct in the securities and futures industry; reducing systemic risks in the securities and futures industry, etc.

In Hong Kong, cryptocurrencies are mainly classified as security cryptocurrencies, NFT and virtual goods (such as Bitcoin), different regulatory policies will be adopted for different types of cryptocurrencies. The SFC's interpretation of security-type cryptocurrencies is divided into the following three categories:

-representative equity (the right to receive dividends and the right to participate in the remaining shares when the company is liquidated) distribution of assets);

- represents claims (the issuer may repay the investment principal and pay interest to token holders on a specified date or upon redemption);

- May be used to obtain benefits from Collective Investment Schemes.

In addition, the Treasury Bureau and the Monetary Authority assist in supervision from different regulatory perspectives. Finance and Treasury Bureau is the second main force of supervision, mainly to combat virtual asset money laundering and terrorist financing activities. The HKMA is in charge of Hong Kong's financial policy and banking and currency management, playing a role similar to a central bank.

The Hong Kong "Declaration" mentioned: in stepping up preparations for the provision of new virtual asset services While promoting the licensing system, we are also willing to contact the global virtual asset industry and invite relevant trading platforms to develop business opportunities in Hong Kong. So what licenses do you need to apply for to legally carry out encrypted financial activities in Hong Kong, and what are the top players in the current market?

SFC has stipulated a total of 12 kinds of regulated activities, that is, to engage in these activities, you need to obtain corresponding licenses to accept supervision. Among them, licenses related to cryptocurrency-related trading platforms, funds and capital management platforms mainly include Type 1, Type 4, Type 7 and Type 9 supervision The companies that have obtained relevant licenses in the market mainly include OSL, HashKey, NH Asset.

OSL< /a>

OSL is a wholly-owned subsidiary of BC Technology Group, a digital asset listed company in Hong Kong. It is also the first company to obtain Type 1 and Type 7 regulatory licenses issued by SFC.

OSL not only provides multi-currency secure and frictionless digital asset transactions, but also includes prime brokerage services , digital asset storage custody and complete digital asset trading solutions and other services.

HashKey

HashKey includes multiple business lines such as HashKey Capital, HashKey Pro, HashKey Custody and HBL (Hash Blockchain Limited) . Currently, HashKey Capital holds a Type 9 license, while HBL holds Type 1 and Type 7 regulatory licenses.

NH Asset

NH Asset (Xinhuo Asset Management "Hong Kong" Co., Ltd. ) is a wholly-owned subsidiary of Xinhuo Technology (formerly "Huobi Technology"). It provides securities consulting and asset management services for professional investors. It has obtained Type 4 and Type 9 regulatory licenses. For virtual asset transactions The Type 1 and Type 7 licenses of the platform supervision, Huobi Technology subsidiary is in the process of application.

At present, NH Asset has released 4 asset management products for professional investors: Xinhuo Bitcoin Fund, Xinhuo Ethereum Fund, Xinhuo Multi-Strategy Virtual Asset Fund and Private Equity Fund.

In addition to the above 12 types of licenses issued by SFC, there are also some digital asset trading platforms in Hong Kong that have obtained TCSP (trust or company service provider licenses). or) licenses, such as HKD.com and Okey Cloud Chain Trust, however, OKey Cloud Chain has not yet started to provide trust or company services.

HKD. com

HKD.com (Hong Kong Digital Asset Exchange) is dedicated to digital currency The transaction and popularization, established in 2019, has a Hong Kong TCSP license. In addition to a secure online digital currency trading platform, HKD.com has also set up a digital currency trading physical store with an area of nearly 10,000 square feet in the core business district of Hong Kong, and is committed to the physicalization and popularization of digital currency.

HKD.com Physical Store

Tokenization of bonds (securities)

Bond tokenization will help improve the efficiency of bond issuance and settlement, reduce costs, and attract more investors to the market. In this Hong Kong "Declaration" It has been mentioned that Hong Kong will try to issue Tokenized green bonds, and temporarily issue a small scale, mainly for institutional investors to subscribe. The goal is to issue within this year, hoping to become the world's first Tokenized government green bond.

The Hong Kong Monetary Authority also stated that it has completed Project Genesis with the Hong Kong Center under the Bank for International Settlements Innovation Hub (BISIH), and completed the retail investors in Hong Kong The concept certification of issuing tokenized green bonds will further study the feasibility of issuing tokenized green bonds through the government green bond plan in the future.

OSL

On July 26 this year, OSL has announced that it will distribute securities tokens in private securities token issuance (STO), and will become the first company to obtain SFC type 1 registration and cooperate with professional Digital asset brokerage for investors to conduct STO. Participants in the offering also include Animoca Brands, Head and Shoulders Financial Group, China Fortune Financial Group Limited, Volmart and Dasheng Asset Management Limited (Monmonkey Group Asset Management Limited).

Knight Dragon

Knight Dragon is a Hong Kong billionaire Zheng Jiachun's real estate developer announced on June 21 this year that it will issue 100,000 security tokens "KDB4", and holders will have the right to share 80% of the gross profit generated by Knight Dragon Building 4. Knight Dragon expects the value of KDB4 Token to reach 140 million pounds (about 172 million U.S. dollars), and the Token sale date has not yet been confirmed.

NFT

Under the planning of the three regulatory agencies, Hong Kong’s virtual asset licensing regulatory system has gradually become clear. As for the regulation of NFT in Hong Kong, a more detailed division has been carried out. NFT can be divided into financefinancial asset NFT and collection NFT b> two parts.

For financial NFT, its promotional transactions must be strictly regulated by SFC, after obtaining the license Only then can it be carried out. For collectible NFT, its activities are not within the scope of SFC's supervision. It is worth mentioning that during the "Hong Kong Financial Technology Week 2022", the organizer also issued a limited edition NFT of attendance certificate for the participants. Priority access to other industry events.

Currently, some highly concerned NFT projects and related infrastructure have emerged in Hong Kong, among which well-known NFT projects mainly come from In the cross-border integration of many Hong Kong stars, such as Edison Chen, Shawn Yue and so on. But at present, the NFT prices of these projects have fallen by more than 80% from their high points, so the following is only an introduction to these projects, not as investment advice.

The Heart Project

The Heart Project NFT from Edison Chen and Los Angeles trendy artist Stefan Meier Heart motif element from limited capsule collection for Emotionally Unavailable. The total number of The Heart Project NFT is 10,000, of which 5,000 were pre-sold to community members as a whitelist.

ZombieClub

ZombieClub is an NFT project launched by Shawn Yue. It takes zombies and Frankenstein as the creative concept. The design includes 9 racial characters, and each race There are different attributes, and the total number is 6666.

Artifact Labs

Artifact Labs, a multi-chain NFT ecosystem, spun off its blockchain-based NFT by South China Morning Post business to turn the art, photos and content of Hong Kong's 118-year-old English-language newspaper into tradable NFTs. Additionally, Artifact Labs helps turn the property of other organizations, including schools and museums, into digital collectibles.

Red Hare NFT

Red Hare is an NFT analysis and big data platform in Hong Kong. It launched Asia's first NFT index in May 2022 , its products and services mainly include: NFT index and NFT analysis suite, NFT big data, Tech Stack service (NFT product accelerator and incubator) and NFT incubation service, etc.

Metaverse/GameFi

Metaverse is an immersive virtual space that provides users with rich consumption content and a fair creation platform, where users can carry out cultural, social, entertainment and other activities. And in the past two years, multiple factors have pushed the metaverse from concept to popularity. It not only brings development opportunities for the combination of games and social networking, but also for retail, e-commerce, and industrial Internet.

In Hong Kong, the development of Metaverse has also brought a The breakthrough of the series. Among them, not only the Hong Kong University of Science and Technology announced the establishment of an extended reality campus MetaHKUST in the Metaverse to provide an immersive learning experience. Well-known companies such as Meta and Yahoo Hong Kong will launch a series of plans in Hong Kong to support the development of the Metaverse. In addition, the leading project The Sandbox has established a prosperous metaverse ecology.

The Sandbox

The Sandbox is a subsidiary of Animoca Brands launching in November 2021 The blockchain-based 3D open world Metaverse.

At present, many organizations in Hong Kong have established virtual worlds in The Sandbox. For example, MTR Corporation has reached a cooperation with it to build a virtual space centered on railways; Hong Kong-listed companies PCCW and Hong Kong Telecom have also announced cooperation with them, becoming the first batch of companies stationed in The Sandbox metaverse Hong Kong CMT (Communication, Media & Technology) organization. In addition, Adrian Cheng, Hong Kong real estate giant and CEO of New World Development Group, announced a US$5 million investment in it.

STEPN

STEPN is a Web3 application that is popular in the encryption field this year. It has attracted many inside and outside the encryption circle through the "Move to Earn" mode Wide adoption by users. After being invited by George Lam, the former chairman of Hong Kong Cyberport (Cyberport), STEPN has now settled in Hong Kong and established its first regional headquarters outside Australia.

Crypto VC

In addition to the encryption funds such as EVG and Token Bay Capital mentioned in the above Global Fast Track 2022, there are currently some encryption VCs and funds in Hong Kong that deserve attention.

Animoca Brands

Animoca Brands aims to promote digital property rights through NFT and games, and build an open metaverse. Currently, Animoca Brands has more than 380 portfolios, including Colossal, Axie Infinity, OpenSea, Dapper Labs (NBA Top Shot), Yield Guild Games, Harmony, Alien Worlds, Star Atlas, and more.

In addition, Animoca Brands is a developer and Publisher, whose original titles include The Sandbox, Crazy Kings and Crazy Defense Heroes.

Kenetic Capital

Kenetic Capital is a Hong Kong-based proprietary trading and venture capital firm focusing on digital assets and blockchain-related companies. The portfolio includes many well-known encryption projects such as FTX, BlockFi, Alchemy, Polkadot, IoTeX, etc.

Chiron

Chiron is a venture capital institution in Hong Kong. It has launched a $50 million encryption fund, mainly investing in DeFi and NFT related to the Metaverse items etc.