During his annual budget speech, Financial Secretary Paul Chan announced that Hong Kong plans to invest HK$50 million (US$6.37 million) to further bolster the development of its Web3 sector. This move signals the special administrative region’s intention to remain at the forefront of innovation, particularly in the fast-evolving realm of blockchain technology. With the new investment, Hong Kong aims to attract more Web3 companies to set up shop, creating new jobs and enhancing the region’s position as a hub for cutting-edge digital innovation.
These include organizing major international seminars that will provide a platform for stakeholders to exchange knowledge, ideas and best practices, fostering cross-sectoral business cooperation, and conducting workshops geared towards expanding the skill sets of Web3 professionals.
Hong Kong Financial Secretary Bullish on Web3
In an encouraging nod to the emerging Web3 industry, Financial Secretary Paul Chan acknowledged the sector’s enormous potential during his budget speech. He described the present era as a “start-up period” for the third-generation internet and identified the wave as a “golden opportunity” for Hong Kong to take a leading role in innovative development. Chan’s positive comments are a clear indication that Hong Kong recognizes the transformative potential of Web3 technology and is eager to capitalize on the opportunities it presents.
As part of Hong Kong’s efforts to facilitate responsible growth within the Web3 sector, Financial Secretary Paul Chan will be spearheading a task force on virtual asset development. This is a crucial component of the Web3 ecosystem, and the task force will offer guidance on the responsible expansion of the virtual asset industry. By taking proactive steps to regulate the sector and minimize potential risks, Hong Kong is sending a clear message that it is committed to creating a sustainable and secure environment for digital innovation to thrive.
Hong Kong’s Regulatory Framework for Virtual Assets
Hong Kong’s commitment to striking a balance between facilitating innovation and ensuring regulatory compliance is evident in the region’s policy statement on virtual assets. Released in October last year, the statement by the Financial Services and the Treasury Bureau highlighted the government’s efforts to create a regulatory framework that is supportive of the virtual asset sector while also addressing concerns such as money laundering and terrorist financing. This approach reflects Hong Kong’s commitment to fostering a business-friendly environment for emerging technologies such as Web3, while also upholding its reputation as a global financial center that prioritizes security and stability.
Huobi Global and OKX to Comply with Hong Kong’s Licensing Regime
Leading cryptocurrency exchanges, Huobi Global and OKX, have signaled their intent to operate in Hong Kong by complying with the region’s licensing regulations. This move comes amid a broader push towards greater regulatory oversight in the virtual asset sector, with Hong Kong’s government taking proactive steps to minimize risks and ensure a sustainable ecosystem for digital innovation. By adhering to the local licensing regime, Huobi Global and OKX are demonstrating their commitment to working within the regulatory framework and contributing to the growth of Hong Kong’s Web3 industry.