Companies competing for cryptocurrency licenses in Hong Kong: "Talent war is imminent."
The cryptocurrency market boom has driven many companies to compete for cryptocurrency licenses in Hong Kong, but recruitment companies say this has not translated into a pursuit of talent.
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While reports suggest that a company spent up to $25 million (about HKD 200 million) to acquire a license, Sue Wei, General Manager of recruitment company Hays, said that exchanges have been seeking to establish a base in Hong Kong, but the demand for recruitment has been "very limited": "Many Web3 companies are still in the early stages of development, but we expect that as they continue to expand and mature, the number of positions will increase."
Olga Yung, Managing Director of Michael Page Hong Kong, also stated that despite recent government efforts to promote related policies, she has not seen a "significant increase in job seekers in the Web3 field". However, she pointed out that in the second to late third quarter of 2023, Web3 companies are seeking a slight increase in demand for "legal and compliance talent."
Neil Dundon, founder of cryptocurrency recruitment company Cryptorecruit, stated that he has not "really noticed too much happening in Hong Kong." He said, "Although the rules have changed, venture capital activity is currently very low." He added, "Although the market feels like it has bottomed out, I expect the situation to gradually improve from now on."
Kevin Gibson, founder of Web3 recruitment company Proof of Search, stated that as companies wait for license approval, cryptocurrency talent may take up to six months to flood the region. He explained, "Many professionals have left Hong Kong in the past few years." With Hong Kong's own talent pool being limited, companies entering Hong Kong "will find themselves in an extremely intense talent competition."
Establishing a cryptocurrency company in Hong Kong requires full-time positions. Gibson believes that the talent shortage will continue until 2024, as Web3 companies may plan to relocate their headquarters to a jurisdiction that supports cryptocurrency. He believes that Web3 companies will find themselves in an extremely fierce talent competition.
Recruitment company data shows that Hong Kong's demographic statistics have been negative since 2020. Employment statistics for the first quarter of 2023 show that the number of job vacancies has increased by nearly 38% compared to the same period last year. Olga Yung added that the main challenge is "attracting talent interested in these industries," as many candidates have risk awareness in the current market sentiment.
However, Henri Arslanian, chairman of the Hong Kong FinTech Association, said he has met several people who have recently switched from traditional finance to cryptocurrency. He pointed out that many people are directly recruited by cryptocurrency companies, while others use websites such as LinkedIn to find job opportunities.
Traditional financial industries undergo layoffs every year or every two years, and stability is no longer as attractive as before, so many people are willing to take risks and try to find new opportunities in the cryptocurrency and Web3 fields.
As the cryptocurrency market rapidly develops, the demand for Web3 companies will increase, especially after they begin to obtain licenses. However, the talent shortage problem in Hong Kong may continue until 2024. Therefore, Web3 companies need to take measures to attract more talent, such as expanding overseas recruitment, offering more attractive salary and benefits, and actively participating in community building and public welfare activities to increase the company's visibility and attractiveness.
