The welcoming stance of Southeast Asian countries towards crypto is unlocking a world of opportunities for digital asset companies. On this note, Hong Kong has been ramping up its efforts to become a global crypto hub. In a recent press release on June 30, 2023, Hong Kong authorities announced the establishment of a Task Force for promoting Web3 development.
The Government of the Hong Kong Special Administration Region declared this news on its official website and Twitter handle, late Friday. According to it, the Task Force is being chaired by the Financial Secretary, Paul Chan. Along with renowned government officials and financial regulators, this Web3 Task Force also includes 15 non-official members, having expertise in their relevant sectors.
The Govt announces the establishment of the Task Force on Promoting #Web3 Development https://t.co/wrC1DmE2QD
— Hong Kong SAR Government News (@newsgovhk) June 30, 2023
The working tenure of non-official personnel is two years and the term has taken effect from July 1, 2023. During this period, they are set to devise recommendations and innovative plans to foster a “sustainable and responsible development of Web3 in Hong Kong.” As per a new update, the chairman of Animoca Brands, Yat Siu has also been officially appointed as a Task Force team member.
“It is a real honor to serve both Hong Kong and the Web3 community in common cause to advance the development of our industry,” Yat Siu tweeted on July 3, Monday. In an interview with a news outlet, Yat Siu suggested that the USA’s unclear crypto regulatory regime could be Hong Kong’s opportunity to lead the Web3 space.
A real honor to serve both #hongkong and the #web3 community in common cause to advance the development of our industry #blockchain #NFTs #crypto #nft #openmetaverse #truedigitalpropertyrights https://t.co/tqZSaAvMl9
— Yat Siu (@ysiu) July 3, 2023
After its restrictive attitude towards crypto in 2018, Hong Kong city is currently striving to rekindle its digital asset industry. The territory’s top finance minister, Chan, is famous for being pro-crypto. During his 2023-2024 budget speech, Chan emphasized it is the need of the hour for Hong kong to seize the “golden opportunity” that Web3 represents.
“The blockchain technology that underpins crypto is secure, transparent, low cost and has the potential to solve many difficult problems in finance, business operations, and trade,” Chan stated in the press release.
Moreover, the government’s budget plan also allocated a hefty sum of HK$50 Million (nearly $6.4 Million) for developing its Web3 ecosystem. Notably, this pivotal move to launch a Web3 Task Force was first announced during this speech in February.
Hong Kong’s Commitment to Support Web3 Innovation
As various nations are eyeing cryptocurrencies with wariness, Hong Kong’s stance on crypto is gradually shifting to a positive side. The city is carving its own path to become the frontrunner in the adoption of the innovative Web3 technology.
“Hong Kong is an international financial centre and a metropolis attaching importance to innovation and technology, and embracing the megatrend of Web3 development,” Chan said, highlighting the incessant ambitions of the city to become a global crypto hub. He also added that Hong Kong “strives to draw together top-notch companies and talent in the arena to build a thriving ecosystem.”
Rather than being the whole picture, this new Task Force is only a part of Hong Kong’s approach towards digital transformation. In October 2022, the Financial Services and the Treasury Bureau (FSTB) of Hong Kong, announced a policy statement on the development of Virtual Assets. As mentioned in the official press release, the statement garnered a favorable response from the markets.
Recently, in February, 2023, the Securities and Future Commission (SFC) of the territory released an official proposal for regulating virtual asset trading platforms. Under the new license regime, effective from June 1, 2023, all crypto trading platforms are required to be licensed by the SFC.
As opposed to its close neighbor China that harbors a negative outlook towards crypto, Hong Kong is adamant to build a vibrant Web3 ecosystem. Owing to these efforts, more than 150 Web3-based firms have expressed their interest in the city’s Cyberport.
Further evidence of Hong Kong’s intent to expedite its Web3 adoption is the launch of Virtual Asset Trading Platform (VATP) handbook. The handbook, released last month, offers a clear rulebook to the crypto companies looking to operate in the territory.
Concluding the press release announcement on an optimistic note, Chan suggested, “With the Task Force bringing together leaders and professionals in the sectors involved, I believe their valuable advice will help Hong Kong develop into a Web3 hub.”
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/07/07/hong-kong-fosters-growth-of-web3-with-its-new-task-force/