Hong Kong sets up Web3 development task force, will it become the next Crypto hub?

Hong Kong forms Web3 task force, potential Crypto hub?

Hong Kong has taken another important step towards becoming a hub for crypto and blockchain technology.

According to a recent statement, the Hong Kong government has announced the formation of a group called the “Web3 Development Task Force,” which is dedicated to promoting the development of Web3, particularly its ethical development.

The task force consists of 15 industry professionals and 11 key government officials, including Hong Kong Financial Secretary Paul Chan. In addition, there are 15 non-official members, including industry experts.

It is reported that the task force will have two years to carry out its work.

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The statement mentions that the Financial Secretary has announced the formation of a dedicated task force in the 2023-24 budget to make recommendations on the sustainable and responsible development of Web3 in Hong Kong.

Paul Chan has long been an advocate of crypto and blockchain technology, stating that Hong Kong needs to seize the “golden opportunity” brought by Web3.

“Hong Kong is seeking to lead and drive innovation, as well as create more new application models, and strive to attract top companies and talent to establish a thriving ecosystem.”

He also said, “The task force brings together leaders and professionals from relevant industries, and I believe their valuable advice will help Hong Kong develop into a hub of Web3.”

Market seems to have responded positively to Hong Kong’s efforts.

In fact, since the policy statement on virtual assets was issued in October 2022, more than 80 virtual asset-related companies have expressed interest in establishing their businesses in Hong Kong.

Just recently, Hong Kong Legislative Council member Wu Chi-wai invited global virtual asset trading platforms to apply for virtual asset service provider licenses in Hong Kong.

He tweeted on June 10, “I hereby invite all global virtual asset trading operators, including Coinbase, to apply for official trading platforms in Hong Kong and to make further development plans.”

This invitation came shortly after the SEC took legal action against Coinbase.

Hong Kong also implemented a new crypto regulatory framework last month.

New rules will no longer impose high barriers on trading restrictions, allowing retail investors to trade virtual assets. In addition, the Securities and Futures Commission of Hong Kong will begin to provide licenses to Crypto exchanges. The improving regulatory environment in the region has caught the attention of some large Crypto companies. Last week, US-based stablecoin issuer Circle said it was closely monitoring Hong Kong’s Crypto policy. Circle CEO Jeremy Allaire said, “What’s happening in Hong Kong may represent the future development of these markets in the Greater China region.” “We see huge demand for digital dollars in emerging markets, and Asia is the center of that demand.”

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