Hong Kong Aims To Become Leading Hub For Web3 In Asia
Hong Kong is set to become a leading hub for Web3 technologies in Asia and beyond, according to the Hong Kong Government’s plans outlined at the Aspen Digital Web 3 Investment Summit. The government has committed to developing the sector and providing a comprehensive support system to enterprises which are passionate pioneers and start-ups in the area.
Hong Kong government officials also said the Government has high-level commitment of developing the Web3 and virtual asset sector and providing a comprehensive support system to enterprises. Read moreļ¼ https://t.co/S5L62VPXjp
— Wu Blockchain (@WuBlockchain) March 20, 2023
Virtual Asset and Web3 Development
The Hong Kong Government’s focus on virtual asset (VA) and Web3 development has resulted in Invest Hong Kong receiving expressions of interest from over 80 virtual asset-related Mainland and foreign companies in establishing their presence in Hong Kong. These companies include VA exchanges, blockchain infrastructure companies, blockchain network security companies, virtual currency wallets and payment companies, as well as other projects on building the Web3 ecosystem.
Furthermore, the government has established a licensing regime for VA service providers that will commence operation in June 2023. Through the establishment of a comprehensive and clear regulatory system, the government aims to attract more quality VA enterprises to set up businesses in Hong Kong or to seek development opportunities in the city.
VA Futures ETFs
The Hong Kong Monetary Authority is also working on a regulatory regime for “stablecoins” with an aim to implementing the relevant regulation in 2024. On market development, the government has advanced its securities rules to allow regulated intermediaries to offer trading of eligible VA Futures ETFs to retail investors in Hong Kong. This makes Hong Kong a pioneer in the Asian market, with three VA Futures ETFs already listed and traded on the Hong Kong Stock Exchange.
Hong Kong is also collaborating with the Mainland on testing the use of digital Renminbi for making cross-boundary payment in Hong Kong, and working with a number of central banks on a multiple central bank digital currency bridge project to expedite cross-border payments. The government is also looking into the issues pertinent to possible issuance of e-Hong Kong dollar.
Cyberport
The Hong Kong Government has also launched a community online platform to encourage local enterprises to connect fintech companies with users and investors locally and globally. Cyberport, a community of start-ups and technology companies, has also housed a number of Web3-related technology companies in areas including financial technology, smart living and digital entertainment. Noting the development of Web3, Cyberport established the Web3 Hub@Cyberport early this year.
Fintech Internship Scheme
To support the development of talent in the fintech industry, this year’s budget has proposed a fintech internship scheme for post-secondary students, with subsidies provided to participating students in Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area.
In addition, the Financial Secretary announced in this year’s Budget that the government will set up a Task Force on VA Development to examine the market situation, development opportunities, regulation needs and ecosystem of the VA sector in Hong Kong. The government has also allocated $50 million to expedite the Web3 ecosystem development, by organising major international events, promoting cross-sectoral business cooperation, and arranging a wide array of workshops for young people.
