Hong Kong Unveils HK$50 Million Plan to Boost Web3 Sector

Hong Kong's government has taken an important step towards establishing the city as Asia's top crypto center. The financial secretary, Paul Chan, revealed a proposal to set aside HK$50 million (US$6.4 million) to enhance the city's Web3 industry in his budget address for the fiscal year 2023-2024.

HK$50 Million Plan to Boost Web3 Sector

The money will be used to organize significant international seminars, promote cross-sectoral corporate collaboration, and organize youth workshops.

Cyberport's Blockchain-Focused Initiative

Earlier this year, the government-run incubator Cyberport launched a new blockchain-focused programme called the Web3 Hub@Cyberport. According to Chan, a huge number of creative and promising businesses are considering establishing themselves in Hong Kong.

Task Force on VA (Virtual Asset) Development

Chan will chair a working team on VA development composed of policymakers, financial regulators, and market players to provide recommendations on the sector's sustainable and responsible growth.

Hong Kong's Determination to Develop Exposure to Cryptocurrencies

Despite market turmoil, Hong Kong is committed to expanding exposure to blockchain and cryptocurrencies. FTX's collapse will not hinder Hong Kong's crypto plans, according to Chan.

SFC's Plans to Enable Retail Investors to Access ETFs

Indeed, the city's primary securities regulator, the Securities and Futures Commission (SFC), has indicated that it would pursue plans to allow individual investors to acquire exchange-traded funds (ETFs) that follow crypto asset futures.

Financial Services Firms Getting Ready to Enable Retail Clients to Trade Digital Assets

Despite concerns about China's regulatory uncertainty, Hong Kong is keen to become a key crypto center in Asia and keep ahead in the quickly growing world of Web3, with financial services businesses planning to allow retail consumers to trade digital assets.

Conclusion

Hong Kong intends to become Asia's leading crypto hub, committing HK$50 million to promote its Web3 industry. Notwithstanding legislative uncertainty, the city's authorities encourage innovation and corporate collaboration in the Web3 ecosystem through initiatives such as the Web3 Hub@Cyberport and the Virtual asset development task committee.

References

• Hong Kong's Web3 Sector Gets HK$50 Million Boost in Annual Budget – Here's the Latest

• History of Web3

• FTX: An Overview of the Exchange and Its Collapse

• China Casts Long Shadow Over Hong Kong's Once-Vibrant Crypto Industry