Hong Kong, a global financial hub, has recently taken a significant step towards embracing Web3 technology by establishing a task force dedicated to advancing its development. Web3, also known as the decentralised web, encompasses various emerging technologies such as blockchain, decentralised finance (DeFi), and non-fungible tokens (NFTs).
“The task force will advise on the “sustainable and responsible” development of Web3 in Hong Kong, according to the statement.”[1] The Hong Kong government has taken a proactive approach by establishing a task force dedicated to promoting the development and adoption of Web3 technologies. The task force, consisting of representatives from government agencies, academia, and the industry, aims to explore the potential applications and challenges associated with Web3 technologies in Hong Kong.
According to the official statement, the government has formed the crew “Chaired by Financial Secretary Paul Chan, the task force comprises 15 non-official members from the relevant market sectors, with the participation of key government officials and financial regulators. The non-official members will serve for two years starting July 1.”[2]
The task group, according to Hong Kong’s Financial Secretary Paul Chan, will help the city achieve its goal of leading the Web3 industry, as he stated on the official announcement
“With the task force bringing together leaders and professionals in the sectors involved, I believe their valuable advice will help Hong Kong develop into a Web3 hub,”[3]
It is undoubtedly that the market is likely to grow with the new development as it has responded favourably to the Hong Kong recent policies and developments of virtual assets. Indeed since the last March, “over 80 virtual asset-related companies had expressed interest in establishing their presence in Hong Kong”[4]
The market is likely to grow even more as there has been recent developments in the sector including the latest regulations and regimes governing the blockchain industry and the crypto market, as for instance the Securities and Futures Commission (SFC) regime to allow licensed platforms to cater to retail investors. Thus, becoming a financial hub within the blockchain industry.
Many of the key players in the blockchain sector have expressed their willingness to operate in Hong Kong, and those who have not are likely to do so following last month’s invitation from Johnny Ng, a Hong Kong Legislative Council member.
“I hereby offer an invitation to welcome all global virtual asset trading operators including
@coinbase to come to HK for application of official trading platforms and further development plans. Please feel free to approach me and I am happy to provide any assistance”[5]
In essence, the task force will be in charge of making suggestions to guarantee the responsible and sustainable growth of Web3 in the area. The formed group include “the CEO of the Hong Kong Monetary Authority, the CEO of the Securities and Futures Commission, and the CEO of Hong Kong Exchanges and Clearing. Yat Siu, chairman of metaverse firm Animoca Brands, also serves as a non-official member”[6]
The new event to advance Web3 development, arises from last year’s government’s policy from October 2022, seeking to attract global digital asset service providers to Hong Kong. Now, this new developments seek to comply with many objectives, “Apart from explaining that blockchain technology underpinning Web3 features characteristics in respect of disintermediation, security, transparency and low cost, the finance chief pointed out that it has the potential to solve many difficulties encountered in finance, trade, business operations and even day-to-day life.”[7]
Hong Kong’s establishment of a task force dedicated to advancing Web3 development marks a notable milestone in the city’s digital transformation journey. By exploring the potential of Web3 technologies, Hong Kong aims to capitalise on the opportunities presented by decentralised technologies.
As the task force progresses, it will shape the future of Web3 adoption in Hong Kong and contribute to the city’s position as a leading global financial and technological hub.
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[1]https://cointelegraph.com/news/hong-kong-establishes-task-force-web3-development?utm_source=Telegram&utm_medium=social
[2] https://www.news.gov.hk/eng/2023/06/20230630/20230630_192644_155.html
[3] https://www.news.gov.hk/eng/2023/06/20230630/20230630_192644_155.html
[4]https://cointelegraph.com/news/hong-kong-establishes-task-force-web3-development?utm_source=Telegram&utm_medium=social
[5]https://twitter.com/Johnny_nkc/status/1667499874521350144?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1667499874521350144%7Ctwgr%5E7945d9651eee6c0d0dcda77e14a51f5bd0b2c6f6%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fhong-kong-establishes-task-force-web3-development
[6] https://nftnow.com/news/hong-kong-establishes-web3-development-task-force/
[7] https://www.news.gov.hk/eng/2023/06/20230630/20230630_192644_155.html
