Polkadot rushes into Hong Kong! The fifth batch of the list contains new signals for Virtual Money investment.

The fifth batch of key enterprises list announced by the Hong Kong SAR government includes the blockchain protocol layer project Polkadot, which will officially establish a presence in Hong Kong. A total of 102 enterprises over the past two years are expected to bring in an investment of 60 billion HKD, further upgrading Hong Kong's virtual money investment environment. Meanwhile, the Hong Kong Monetary Authority and the People's Bank of China announced the regularization of cross-border credit information exchange, utilizing blockchain technology for the Shenzhen-Hong Kong data verification platform.

Polkadot Selected as a Key Enterprise in Hong Kong: Blockchain Industry Receives Official Recognition

On October 11, the Hong Kong SAR government introduced the fifth batch of key enterprises, releasing a significant positive signal for Hong Kong's virtual money investment environment. Among the 18 key enterprises in this batch, the blockchain protocol layer project Polkadot stands out, marking a new height of official recognition from the Hong Kong government for the blockchain and cryptocurrency industry. Polkadot will establish a base in Hong Kong to participate in research and development and business expansion, which not only opens up new development space for the project itself but also injects a strong boost into the entire Hong Kong virtual money investment ecosystem.

Hong Kong's initiative to introduce key enterprise offices has been in operation since the end of 2022. This new measure was proposed by Chief Executive John Lee in his policy address, aiming to be more proactive in attracting investment and enhancing Hong Kong's competitiveness. Over the past two years, the office has cumulatively introduced 102 enterprises, which are expected to bring approximately HKD 60 billion in total investment to Hong Kong and create around 22,000 high-quality jobs. These enterprises are setting up regional headquarters and developing R&D projects in Hong Kong, bringing positive benefits to the economy, diverse industrial development, and the innovation and technology ecosystem.

The composition of the fifth batch of the list highlights the strategic shift in Hong Kong's virtual money investment policy. In addition to Polkadot, the list also includes mainland internet company Xiaohongshu, UK pharmaceutical company GlaxoSmithKline, mainland autonomous driving company WeRide, and US digital intellectual property company Fobo Group, among others. The director of the introduction office, Ren Jingxin, pointed out that nearly 40% of key enterprises come from overseas, and the proportion of foreign investment has significantly increased compared to the past, reflecting the continuous enhancement of Hong Kong's attractiveness as an international metropolis. This international characteristic is especially important for Hong Kong's virtual money investment market, as cryptocurrencies are essentially global assets that require an open regulatory environment and international talent and capital.

The selection of Polkadot is symbolic. As a well-known Blockchain infrastructure project, Polkadot focuses on achieving interoperability between different Blockchains, and its technical strength and ecosystem are widely recognized in the industry. The Hong Kong government’s choice to introduce such a pure Blockchain technology project, rather than just a fintech company, demonstrates an acknowledgment of the value of underlying Blockchain technology. This releases a positive signal for other Blockchain projects and cryptocurrency enterprises: Hong Kong's Virtual Money investment environment not only welcomes innovation at the application layer but also places significant emphasis on the construction of the underlying protocol layer.

The Financial Secretary, Paul Chan, pointed out at the signing ceremony that this is the first time a cultural and creative enterprise that combines technology with arts and entertainment has been introduced. Driven by cultural and creative intellectual property and emerging technologies such as AI and Web3, the global digital entertainment market is booming. Hong Kong, with its close ties to the mainland and the world, an open and diverse culture, and a thriving innovation and technology ecosystem, is an ideal platform for businesses to expand into the Asian and even global markets. Although this statement does not directly mention cryptocurrency, the mention of Web3 implies the important position of Hong Kong's virtual currency investment in a broader digital economy strategy.

Deepening Application of Blockchain Technology: Standardization of Cross-Border Credit Reporting

On the same day that Polkadot was selected as a key enterprise, another major piece of news further strengthened the application prospects of blockchain technology in Hong Kong's virtual money investment environment. According to Caixin, the Vice President of the Hong Kong Monetary Authority, Yuen Kwok-hang, indicated that a decision has been made with the People's Bank of China to regularize the "Cross-border Credit Information Sharing" business pilot set to commence in 2024. This decision signifies that blockchain technology has gained official recognition in the integration of financial infrastructure between Hong Kong and the mainland, paving the way for the compliance and mainstream adoption of virtual money investment in Hong Kong.

This pilot covers the Guangdong-Hong Kong-Macao Greater Bay Area, with Hong Kong and Shenzhen as the first to try. Participating institutions include 7 local retail banks in Hong Kong such as HSBC, Standard Chartered, and Bank of China Hong Kong, as well as 3 local credit institutions. The core of the pilot is the cross-border data verification platform between Shenzhen and Hong Kong, which establishes a node in each location using Blockchain technology. This distributed node design is a typical application of Blockchain technology, embodying the characteristics of decentralization, tamper resistance, and traceability.

The operational mechanism of the platform demonstrates the unique advantages of Blockchain in data privacy and cross-border compliance. Users autonomously obtain personal or business data from data providers, upload it to the designated platform, and the system generates a 64-bit hash code using encryption algorithms. The other party across the border (data users) matches it with the same 64-bit hash code, thereby enabling the legal cross-border transfer of data while ensuring that it cannot be tampered with by users. This design not only meets the demand for cross-border data flow but also protects user privacy and ensures data integrity and immutability.

This blockchain application case has far-reaching significance for the virtual money investment market in Hong Kong. It proves that the regulatory authorities in Hong Kong and the mainland have a clear understanding of the value of blockchain technology and are willing to adopt this technology in critical financial infrastructure. When blockchain technology is applied in such important and sensitive areas (cross-border credit reporting involving the credit records of individuals and enterprises), its reliability and compliance have been validated at the highest levels. This official endorsement will greatly enhance the market's confidence in blockchain technology and related investments.

For virtual money investors and entrepreneurs in Hong Kong, this development offers multiple insights. First, regulators do not oppose blockchain technology but are actively exploring its applications within a compliance framework. This means that blockchain projects focusing on technological innovation, valuing compliance, and capable of collaborating with regulators have broad development space in Hong Kong. Secondly, the blockchainization of financial infrastructure is accelerating, which will create a more favorable environment for various blockchain applications. As banks and financial institutions become accustomed to using blockchain technology, their acceptance of cryptocurrencies and digital assets will also correspondingly increase.

Third, the integration of Shenzhen and Hong Kong is accelerating in the fintech sector, providing Hong Kong virtual money investment projects with the opportunity to access the vast mainland market. Although the mainland maintains strict regulations on cryptocurrency trading, it holds an open attitude towards the application of blockchain technology. If Hong Kong projects can provide blockchain solutions for mainland enterprises and individuals within a compliant framework, they may discover tremendous business opportunities. The success of the cross-border credit information sharing platform may become a model for more cross-border blockchain applications.

Strategic Advantages of Hong Kong's Virtual Money Investment Environment

The selection of Polkadot and the application of blockchain technology in cross-border credit investigation is just the latest manifestation of Hong Kong's advantages in the virtual money investment environment. As an international financial center, Hong Kong has a sound legal system, free capital flow, a well-developed financial infrastructure, and an open regulatory attitude, all of which are ideal conditions for the development of the virtual money industry. Unlike many jurisdictions that have a hostile or ambiguous attitude towards cryptocurrencies, Hong Kong has clearly expressed its vision to become a "global virtual asset center."

The Hong Kong Securities and Futures Commission (SFC) has established a relatively clear regulatory framework for virtual assets, including a licensing system for virtual asset trading platforms, an approval process for virtual asset ETFs, and protective measures for retail investors. Although these regulatory requirements are strict, they provide legal certainty, allowing compliant businesses to operate under clear rules. This certainty is crucial for the long-term development of virtual money investment in Hong Kong, as it enables businesses to engage in long-term planning and investors to receive better protection.

The success of the Investment Promotion Agency also demonstrates the Hong Kong government's determination and execution in attracting investment. The record of introducing 102 companies, HKD 60 billion in investments, and 22,000 jobs over two years proves Hong Kong's real competitiveness in attracting innovative enterprises. The agency focuses on leading companies in the innovation and technology sector, covering AI, data science, fintech, biomedical technology, advanced manufacturing, and new energy, and has now added the cultural and creative industries. This diversified industrial layout creates rich application scenarios and collaboration opportunities for virtual money investment in Hong Kong.

It is worth noting that nearly 90% of the 102 companies will establish regional or overseas headquarters in Hong Kong, nearly half are already listed in Hong Kong, and about 10% are preparing to list in Hong Kong. This high proportion of physical presence and participation in the capital market indicates that this is not simply a "listing" behavior, but a real business landing. For virtual money investment in Hong Kong, this means that the ecosystem is becoming more substantial and mature, rather than just a slogan at the policy level.

In the future, the investment environment for Virtual Money in Hong Kong is likely to continue improving. With more leading enterprises settling in, the deepening application of Blockchain technology in financial infrastructure, and strengthened cooperation with Mainland China's financial technology, Hong Kong is expected to truly become a global Virtual Asset center connecting the East and West. For investors, entrepreneurs, and practitioners, closely monitoring Hong Kong's policy trends, seizing settlement opportunities, and participating in ecosystem construction may bring substantial returns.