OASES helps innovative companies expand into Hong Kong to boost city’s fintech sector
The Office for Attracting Strategic Enterprises has a pivotal role in CertiK and KN Group’s moves to scale their operations and capabilities
As an international financial hub with a reputation for embracing innovation, Hong Kong has made bold strides to cement its position as a leader in financial technology and digital assets.
Today, the city is home to over 1,100 fintech firms specialising in areas ranging from mobile payments and cross-border wealth management to AI-powered financial consultancy. Hong Kong’s fintech sector includes eight digital banks, four virtual insurers and 11 licensed virtual asset trading platforms, and its total revenue is projected to reach US$606 billion by 2032, with an annual growth rate of 28.5 per cent.
The Hong Kong government has been devising policies to facilitate the city’s fintech development. In 2023, it was among the first in the world to establish clear licensing frameworks for virtual asset trading platforms.
More recently, the passage of the Stablecoins Bill in May marked a significant step in the regulation of virtual assets. The bill, which establishes a licensing regime for fiat-referenced stablecoins issuers in Hong Kong, joins the existing licensing regime for virtual asset service providers that governs exchanges and trading platforms. Together, they provide comprehensive oversight of the city’s virtual asset ecosystem, from asset creation to trading.
Fintech is one of the five targeted industries for the Office for Attracting Strategic Enterprises (OASES), a government initiative launched in 2022 to attract high-potential overseas and mainland companies to establish or expand their operations in Hong Kong by providing one-stop tailored support, from regulatory guidance to business networking. The other four industries are artificial intelligence and data science, advanced manufacturing and new energy technology, life and health technology, and cultural and creative technology.
Since its inception, OASES has supported 84 strategic enterprises, which are projected to invest about HK$50 billion (US$6.39 billion) and create over 20,000 jobs in Hong Kong over the next few years, bolstering the city’s economic growth and innovation landscape.
Among them is CertiK, a global leader in Web3 security and compliance solutions that has found Hong Kong to be more than just a regional base – it has proven to be a strategic hub for expanding institutional services, driving compliance innovation and connecting with clients in Asia and beyond.
Founded in 2018 and headquartered in New York, CertiK provides blockchain security, smart contract auditing and risk assessment tools to financial institutions and regulatory bodies worldwide. With a presence in more than 150 countries and regions, the company has nearly half of the global market share in blockchain security and a valuation of over US$2 billion. Its Hong Kong office, located at Cyberport, focuses on supporting institutional clients, regulatory initiatives and the fast-growing virtual assets ecosystem.
In April, CertiK signed a partnership agreement with OASES to become one of its strategic enterprises. According to Professor Kang Li, chief technology officer of CertiK, the decision to expand the company’s footprint in Hong Kong was inspired by the city’s commitment to becoming a regulated, innovation-driven hub for the development of Web3 – the next generation of the internet which leverages technologies that decentralise data ownership and online control, and also makes greater use of AI.
“Hong Kong’s government has demonstrated strong commitment to developing the Web3 ecosystem through a clear regulatory framework,” Li says.
He adds that another key advantage is Hong Kong’s talent ecosystem, with its growing pipeline of cross-disciplinary expertise in finance, law and engineering. Li notes that the academic focus has shifted significantly in recent years, as evidenced by the city’s leading universities now offering programmes in cybersecurity and blockchain security.
He also cites the partnership with OASES as a reason for CertiK’s early success in Hong Kong. From the start, OASES helped connect the company with major institutions through curated events and strategic matchmaking. In addition, Li believes that CertiK’s designation as an OASES strategic enterprise contributed to the company securing contracts with several prominent banking clients.
OASES has also introduced CertiK to collaborators such as EX.IO, a Hong Kong-licensed virtual asset trading platform that is another one of the office’s strategic enterprises. These connections have led to new projects for CertiK, particularly in the area of off-chain auditing. This recently expanded service offering includes back-end system reviews for institutions like cryptocurrency exchange company Crypto.com and RigSec, a blockchain regulatory technology company that serves as a key custodian behind several licensed exchanges.
Li believes these opportunities will also allow the company to contribute to the development of Hong Kong’s Web3 ecosystem, diversify the city’s economy and enhance its global competitiveness.
Since entering Hong Kong, CertiK has expanded into new markets across Asia, including Thailand, Malaysia, Vietnam, Japan and South Korea. The company works directly with regulators, providing training to Japan’s Financial Services Agency, and it has also signed memorandums of understanding with blockchain development zones in Busan and Seoul, South Korea.
“We need a bridge that connects all global public chains, and Hong Kong is in a strategic location to do so,” Li says. “Coupled with a strong institutional presence, capital market depth and government support, I see Hong Kong becoming super competitive as a global fintech hub.”
While CertiK has been benefiting from OASES’ ongoing support and ecosystem integration since establishing its presence in Hong Kong, the office also plays a crucial role in assisting companies before they enter the market.
One such example is KN Group, a financial services provider originating from mainland China which specialises in AI-driven credit risk assessment. Founded in 2014, the company focuses on expanding access to financial services in underserved markets, and now serves over 60 million customers and partners with more than 200 financial institutions worldwide.
KN Group started receiving guidance from the Hong Kong government five years ago, when it was evaluating potential locations for its global headquarters. Following OASES’ establishment in 2022, the company connected with the office and began receiving regulatory insights and introductions to Hong Kong’s fintech ecosystem. This ultimately led to KN Group selecting Hong Kong as the main hub for leading and managing its international operations.
“From the beginning, OASES gave us a lot of confidence,” says Lucas Kong, general manager of KN Group Hong Kong and KN Group’s global head of treasury. “It introduced us to key government bodies such as the Innovation, Technology and Industry Bureau and the Belt and Road Office, as well as statutory organisations like the Hong Kong Trade Development Council. These efforts helped to facilitate a smooth transition into Hong Kong’s fintech landscape.”
Those introductions also opened doors for KN Group to better understand the city’s legal and regulatory frameworks while enabling the company to explore cross-border collaboration opportunities, particularly in markets such as the Philippines, where regulatory complexities often pose barriers to entry.
KN Group has continued to receive support from OASES since establishing its operations in Hong Kong. The company became an OASES strategic enterprise last November and set up its global headquarters at Taikoo Place on Hong Kong Island around the same time. The company recently expanded into a 16,000-square-foot office within the same complex and now employs over 100 local and international professionals in the city.
Kong says OASES’ support extends well beyond introductions and onboarding, noting that the office provides regular policy updates and even anticipates KN Group’s needs by proactively suggesting opportunities that align with the company’s business goals. He believes these support measures will allow the company to realise its vision of enhancing collaboration between Hong Kong and members of the Association of Southeast Asian Nations in the areas of AI and finance.
“This truly reflects OASES’ unique value proposition,” Kong adds. “It serves as an effective bridge, helping us access more resources and identify collaboration opportunities that align more closely with our development needs.”
In the past year, KN Group has actively engaged with Hong Kong’s business and regulatory community by participating in major conferences held in the city, including the International Data Industry Alliance Global Summit, Hong Kong FinTech Week, the Asian Financial Forum and the Belt and Road Summit.
As part of its strategic evolution, KN Group has also embraced blockchain technology. In July, the company formed a strategic partnership with Hong Kong-based Web3 fintech firm AlloyX to launch the industry’s first tokenised fund backed by consumer loans, unlocking new funding opportunities for traditional finance businesses.
“By entering the Web3 space, we can significantly enhance our liquidity, stability and capital efficiency and open new channels for asset allocation in global capital markets,” Kong says. “With developments such as the passage of the Stablecoins Bill, Hong Kong’s fintech ecosystem is poised for continued growth.”