It may seem that crypto companies have been preparing to enter Hong Kong with relentless enthusiasm, but that has yet to translate into jobs within the country, according to recruiters.
On June 1, about 150 companies lined up to obtain a local crypto license that would allow them to operate a local crypto trading platform. Some have reportedly spent as much as $25 million for detention.
Speaking to Cointelegraph, Su Wei, managing director of major recruitment firm Hays, said that while exchanges have been seeking to build a base in Hong Kong, the industry’s hiring needs are “so far light.”
“Many Web3 companies are still in the early stages of development, but we expect openings to increase as they continue to expand and mature.”
In fact, Wei said that since the downturn in the cryptocurrency market, her company has seen “a significant drop in requests for technical talent.”
This was particularly the case when talents were “layed off en masse,” making some reluctance to work for a crypto company “because of the precarious nature of the business being primarily dependent on cryptocurrency prices,” she said.
Similarly, Cryptorecruit founder Neil Dondon said he “hasn’t really noticed much of what’s going on in Hong Kong.”
“Although the rules have changed, risk activity is very low at the moment,” he said. “Although it looks like we’ve bottomed out, I would expect this to start to trend upwards from here.”
Olga Young, managing director of Michael Page Hong Kong, said it had yet to see a “significant increase” in those looking for jobs on Web3 despite the government’s recent push.
However, Young noted an “uptick” in Web3 companies seeking “legal and compliance designations” in the mid-to-late second quarter of 2023.
The talent war is coming
Looking to the future, Kevin Gibson, founder of staffing firm Web3 Proof of Search, told Cointelegraph that it could take up to six months for crypto talent to reach the region as companies await license approvals.
“A lot of niche talent has left Hong Kong in recent years,” Gibson explained. He said that the local talent pool is weak, and Companies that land in Hong Kong will “find themselves in an intense war for talent”.
Setup in Hong Kong requires that key roles be full-time positions. Gibson believes that “talent pressure” will continue into 2024 as Web3 companies “will likely look to move headquarters to a pro-crypto jurisdiction if all goes as planned.”
Last data The demographics of the city show a negative population growth rate since 2020. Employment statistics For the first quarter of 2023, the number of vacancies showed an increase of approximately 38% compared to the same period last year.
Young added that the main challenge is “attracting talent who are interested in these sectors” as many candidates are risk averse given the “current market sentiment”.
Related: Hong Kong formed a working group to advance the development of Web3
On the other hand, Neil Tan, President of the Hong Kong FinTech Association, said that he has “met many people who have recently switched from TradFi to crypto.”
Many companies deal with crypto companies directly, Tan said, while others use sites like LinkedIn to find jobs.
Tan added, “TradFi continues to shed headcount every year or two, so stability isn’t necessarily as attractive as it used to be.”
“Many people are saying that there is so much positive news within the crypto and Web3 space in Hong Kong that they are ready to shoot.”
Asia Express: Huobi is suing… Huobi? 3AC rises from the ashes, Korea’s crypto infection