Hong Kong’s Financial Secretary, Paul Chan, recently stated in a blog post that despite the volatility of the crypto market, now is the “right time” to advance Web3 adoption in the region. He identified Web3 technologies as one of three key areas to focus on in Hong Kong’s budget planning.
Chan likened the current crypto industry to the internet’s early days in the 2000s, when a large “bubble” burst, allowing for the promotion of real-world use cases in a quieter market. He emphasized a strategy that balances “proper regulation” and “promoting development” for Web3’s innovative progress.
Hong Kong’s hosting of the two-day Digital Economy Summit indicates the widespread interest in the adoption of Web3 technologies on both state and global levels. The Hong Kong government has allocated $6.4 million towards Web3 development, primarily for organizing international seminars and workshops aimed at fostering a thriving ecosystem.
New regulations require all virtual currency exchanges in Hong Kong to obtain a license and relevant permit. The Securities and Futures Commission (SFC) has invited public feedback on digital currency listing and protective measures for retail investors. The new licensing regime, expected to launch on June 1, signals a more relaxed regulatory environment that could attract Chinese-founded Web3 companies previously driven to locations like Singapore or Dubai.
Government-run business Cyberport will dispense the allocated funds through the Web3Hub@Cyberport accelerator, which aims to attract 1,000 Web3 start-ups to Hong Kong over the next three years. According to Daniel Cham, general manager for Workday Greater China, the government will also earmark HK$500 million for Cyberport to support the digital transformation of start-ups.