Plans to establish Hong Kong as a leading crypto hub in Asia have been unveiled, with authorities setting aside HK$50 million (US$6.4 million) to boost the city’s Web3 sector. The investment will go towards funding blockchain research and development, as well as creating an innovation lab to support startups in the space.
The city’s Financial Secretary, Paul Chan, spoke about the city’s plans to take advantage of the third generation of the Internet (Web3) in a budget speech on the 2023-2024 period. He said that Web3 has the same huge potential as the first and second generations and that the city must keep up with the times and spearhead innovation development.
Referring to the government-run incubator Cyberport, the official noted that, earlier this year, the entity announced a new blockchain-focused initiative, the Web3 Hub@Cyberport.
I will allocate $50 million to expedite the Web3 ecosystem development by, among other things, organizing major international seminars, to enable the industry and enterprises to better grasp frontier development and to promote cross-sectoral business co-operation. This will help young people gain the skills they need to be a part of this growing industry.
Chan said that in the past few months, many innovative enterprises with potential have been considering setting up business in Hong Kong. In order to take the next step, Chan plans to establish and lead a task force on VA development, with members from relevant policy bureaux, financial regulators and market participants, in order to provide recommendations on the sustainable and responsible development of the sector.
Hong Kong has been a hotbed for cryptocurrency and blockchain technology innovation in recent years, with the government continuing to show determination to develop the territory’s exposure to these technologies, despite the ongoing market turbulences. Last November, Chan stated that while the abrupt collapse of major crypto exchange FTX has shaken the cryptocurrency markets across the world, it will not hamper Hong Kong’s crypto-related plans.
The government’s commitment to developing blockchain technology and cryptocurrencies in Hong Kong is unwavering, even in the face of market volatility. Last November, Chan stated that while the abrupt collapse of major crypto exchange FTX has shaken the cryptocurrency markets across the world, it will not hamper Hong Kong’s crypto-related plans.
Our policy statement released recently is conducive to building a thriving virtual asset market,” said the official who has served as Hong Kong’s financial secretary since 2017.