Hong Kong is shifting its attitude towards blockchain technology, cryptocurrencies, and Web3, which is attracting the attention of industry experts and potentially enticing businesses away from the United States. The city has been actively fostering the development of the Web3 space and enabling retail investment in cryptocurrencies. A notable step in this direction is the establishment of the Task Force on Promoting Web3 Development, which includes 15 industry experts, including Yat Siu, the co-founder of Web3 investment firm Animoca Brands.
Siu emphasized Hong Kong’s evolving stance on crypto and Web3, positioning the city as an attractive destination for startups and established firms. Siu acknowledged that the United States should not be disregarded in the Web3 race but highlighted the regulatory uncertainty that many firms in the sector face, leading to a “regime of fear.” He pointed out that jurisdictions like Hong Kong, Japan, the Middle East, and Europe have started to establish consistent rules, unlike the inconsistent approach of the U.S. Securities and Exchange Commission (SEC), which recently filed separate charges against Binance.US and Coinbase for alleged unregistered securities offerings.
While Hong Kong has historically maintained a distance from the cryptocurrency space, the government has demonstrated agility by reversing restrictive policies and engaging in extensive consultations with industry proponents. Siu commended the government’s willingness to adapt and noted that Hong Kong has seized the opportunity to take a leadership position in driving Web3 development, contrasting with what he described as the U.S.’s self-sabotage of its potential as a prime destination for Web3 companies.
Web3 in Hong Kong
The Web3 task force in Hong Kong is expected to be an evolving initiative. Siu expressed pleasant surprise at the inclusion of numerous Web3 proponents, indicating the city’s commitment to fostering the sector. The task force is yet to convene its first meeting but is expected to hold regular discussions with various crypto, blockchain, and Web3 working groups established in Hong Kong.
Members of the Web3 task forces have entered into a two-year agreement with the Hong Kong government and will advise on strategies to drive industry growth. Siu envisions the task force playing a pivotal role in fostering talent and promoting blockchain solutions in tertiary education institutions, further strengthening the relationship between the government and the Web3 community.
Hong Kong’s efforts to nurture the Web3 sector have already yielded results. Cyberport, a technology hub in the city, has attracted over 150 Web3 firms this year. Additionally, companies are reportedly investing significant amounts, ranging from $2 to $25 million, to obtain virtual asset service provider licenses to operate in Hong Kong.
Hong Kong’s changing attitude towards blockchain technology, cryptocurrencies, and Web3, coupled with its proactive initiatives and engagement with industry experts, position the city as an emerging leader in the global Web3 landscape, potentially drawing businesses away from the United States.
