Hong Kong and Web3: Bitget's Expansion and Rise
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Hong Kong and Web3: Bitget's Expansion and Rise
While building its foundational ecosystem, Bitget is also continuously conducting crossover initiatives to expand Web3's global influence.
Navigating Web3 tides with focused insightsHong Kong once held a pivotal position in the crypto and Web3 industries, attracting major players such as Tether, the largest stablecoin issuer, Bitfinex, and Crypto.com. However, fluctuating regulatory policies prompted some crypto and Web3 companies to relocate from Hong Kong, causing the city to fall behind during the rapid development of Web3.
After experiencing global economic turbulence and shifts in international capital flows, Hong Kong has realized the time has come to embrace virtual assets and Web3. On April 11, 2023, several fintech companies from mainland China and Hong Kong, industry leaders, and legislative councilors from the innovation and technology sector jointly established the "Hong Kong Web3.0 Association." At the opening ceremony, Hong Kong Chief Executive John Lee stated that Web3 plays a crucial role in financial technology development and expressed hope that the association would work closely with the SAR government to seize the vast opportunities brought by Web3 and the virtual asset industry.
For crypto and Web3 enterprises, the most significant development is Hong Kong's upcoming licensing regime for virtual asset service providers, set to take effect in June. This marks the formal legalization of crypto and Web3 businesses operating in Hong Kong.
Bitget, a leading global cryptocurrency derivatives and copy trading platform, has taken the lead by launching a $100 million Web3 fund to support the next generation of cryptocurrency projects across Asia.
Deep Commitment to Web3: The $100 Million Fund Is Just the Beginning
Hong Kong previously hesitated and wavered in its approach to crypto and Web3. Cryptocurrencies are highly volatile and often associated with scams and fraudulent schemes. Regulating this space remains a challenge globally. Without finding a balance between innovation and risk management, Hong Kong once discouraged many high-quality crypto firms. As the industry matured, regulators recognized that avoidance brings no benefit—proactive engagement clearly offers greater advantages.
According to Gracy Chen, Managing Director at Bitget, the company hired Hong Kong-based legal and compliance experts at the end of 2022 to better understand local regulations and is preparing to apply for a Hong Kong virtual asset exchange license to provide users with secure and compliant services.
From its inception, Bitget has actively responded to regulation. In March 2020, Bitget obtained an MSB license under guidance from FinCEN, a U.S. regulatory body. The following month, it secured authorization as a digital currency trading service provider in Australia. Today, Bitget holds MSB licenses in the United States, Canada, and Australia, and has registered its crypto business operations in Italy, Poland, and Lithuania. It is also actively pursuing licensing applications and registrations in the Czech Republic, Turkey, and Dubai.
Following Hong Kong’s announcement of strong support for Web3, Bitget responded swiftly and received broad backing from peers in the industry. After announcing its $100 million Bitget Web3 Fund, the company received inquiries about potential collaboration from venture capital firms including Foresight Ventures, Dragonfly Capital, SevenX Ventures, DAO Maker, and ABCDE Capital.
Gracy Chen told BlockBeats that the Bitget Web3 Fund will operate as a Fund of Funds (FoF), meaning it can invest in other funds as a limited partner (LP). For Bitget, this fund will open up new business opportunities and diversified revenue streams, enhancing its brand reputation and influence within the industry. It will also strengthen ties between Hong Kong and the Web3 ecosystem. For the broader crypto industry, the establishment of the Bitget Web3 Fund will provide more funding and opportunities, accelerating the growth of innovative projects.
Hong Kong’s strong support for Web3 presents not only an opportunity for projects but also for Hong Kong itself. To regain its status as a global financial hub, Hong Kong needs substantial inflows of capital and talent, while Web3 companies require a favorable operating environment. As Gracy Chen noted, the mutual embrace between Hong Kong and Web3 will create a “synergy,” where clustering effects foster the establishment and growth of a comprehensive Web3 industrial ecosystem in Hong Kong. And this is just the beginning.
Thinking Like Users: Amplifying Wealth Creation
Bitget’s ability to quickly respond to policy changes and embrace regulation stems from its corporate DNA and culture.
Among Bitget’s three core values, the first is “user-first”—meaning business decisions are driven by user needs rather than competitors’ moves. Placing users’ interests at the center, Bitget strives to offer the most comprehensive services, including listing the hottest tokens on the market. When L2 ecosystem projects like Arbitrum surged in popularity, Bitget promptly launched a full suite of Arbitrum-based projects, including GMX, MAGIC, and DPX, giving users more choices and enabling many CEX users to achieve substantial gains. Similarly, for trending sectors such as AI and Memes, Bitget moved swiftly, saving users the trouble of searching for on-chain addresses or interacting with contracts.
At the same time, Bitget continues to empower its native token BGB—first by updating the whitepaper and roadmap and developing new innovative features. Subsequently, BGB will initiate a buyback and burn mechanism to reduce circulating supply. Concurrently, BGB was listed on competitor Bitfinex, further boosting liquidity.
A positive flywheel has begun turning: BGB’s market cap surpassed $560 million, overtaking HT to become the sixth-largest CEX platform token. TokenInsight’s recently released Q1 2023 Exchange Report also showed that BGB was the best-performing CEX platform token that quarter, with a quarterly gain exceeding 120%.
As Bitget earns user trust, users reciprocate, amplifying the wealth effect of Bitget’s IEO projects. Since the beginning of 2023, Bitget has launched three Launchpad projects: Panda Farm ($BBO), Haloworld ($HALO), and GoSleep ($ZZZ). The highest returns achieved by participants in these IEOs were 19,900%, 14,842%, and 7,892%, respectively.
Judging from recent user participation levels and market feedback on Bitget’s IEOs, Bitget’s influence and reputation among users are clearly expanding. A Twitter user who publicly questioned Bitget in February recently noted that data from CMC shows Bitget’s ETH and USDT reserves increased by 39% and 27% respectively over the past three months, reflecting continuous user and asset inflows.
Over the past two years, Bitget has emerged from among numerous smaller exchanges to challenge the industry’s top-tier platforms. According to Cointelegraph’s latest report, ABC of Crypto 2023, based on CEX trading volume rankings for the first four months of the year, Bitget has become the world’s fifth-largest spot trading platform and the fourth-largest derivatives trading platform.
Ecosystem Expansion and Breaking Boundaries
Delivering wealth creation for users and prioritizing their interests is where Bitget’s journey began. When asked how Bitget plans to become a world-leading platform, Gracy Chen believes that future exchange competition will no longer be confined to platforms alone—it will be a battle of entire crypto ecosystems.
On March 22, Bitget invested an additional $30 million to acquire controlling stake in BitKeep, a cryptocurrency wallet valued at $300 million, which was later rebranded as Bitget Wallet. With this move, Bitget has completed its foundational infrastructure layout in the Web3 industry. Founded in 2018, after several years of development, Bitget has paved the way for users into Web3—from daily news consumption and mobile apps to project incubation and investment.
Currently, notable projects under Bitget’s ecosystem include Foresight News, Foresight X, Foresight Ventures, and Bitget Wallet. Foresight News is a Chinese-language content platform focused on cutting-edge fields like crypto and Web3. Newcomers to Web3 can use Foresight News for quick learning. Foresight X and Foresight Ventures focus on project incubation and investment, respectively, managing over $400 million in assets combined. Bitget Wallet provides users with a decentralized alternative to CEX, allowing them to quickly access the latest trends in DeFi and Web3.
While building its foundational ecosystem, Bitget is also continuously engaging in boundary-breaking initiatives to expand Web3’s global reach.
In 2021, Bitget successfully partnered with Juventus, becoming the sleeve sponsor, and renewed the partnership in 2022. Bitget also collaborated with Juventus players Moise Kean and Wojciech Szczesny on charity initiatives, raising funds for nonprofit organization DIY Girls to promote girls’ interest in science, technology, engineering, and math (STEM) education.
Bitget’s most impactful crossover moment came in October 2022 when it formed an exclusive partnership with Lionel Messi. Shortly afterward, Messi led Argentina to victory at the 2022 FIFA World Cup in Qatar, earning the Golden Ball award. Sources revealed that Bitget’s two-year partnership with Messi exceeds 100 million RMB, underscoring the company’s commitment and determination to drive Web3 and crypto into the mainstream.
Founded in 2018, Bitget has followed a completely different path compared to FTX, which was founded the same year. One industry veteran remarked that FTX resembled a sprinter—explosive and dazzling—but the race isn’t just 100 meters long. Like Bitget, both started with derivatives, but Bitget is more like a marathon runner: unassuming at first glance, yet steady, patient, and persistent,磨砺出 value over time. This “long-termism” may well be the shared trait among the most successful platforms and projects in the industry.
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