Hong Kong City continues to press ahead with Web3 and crypto adoption efforts, despite market volatility and regulatory crackdowns elsewhere, Hong Kong Finance Secretary Paul Chan has confirmed.
In a blog post published on the Finance Secretary's official website on Sunday, Chan said Web3 - described as "the third generation digital economy and internet" - has been identified as one of the top three areas of focus for the promotion of high quality development in Hong Kong.
The senior Hong Kong city official said he remains optimistic about the future of Web3. He added that now is the time to promote the development of Web3 and compared it to the rise of the Internet in the early 2000s.
The blog post also reiterated the government's commitment to allocate HK$50 million (US$6.4 million) in funding to accelerate the development of the Web3 ecosystem in Hong Kong through an incubator. government run known as Cyberport
To ensure that the crypto industry develops in a sustainable and responsible manner, Hong Kong plans to adopt a strategy of "proper supervision" and "promotion of development". Both of these strategies will aim to prevent systemic risk, bolster anti-money laundering (AML) efforts and provide investor education, Chan explained.
The city's efforts to attract crypto companies have received an unexpected boost from the US government which is currently waging a harsh crackdown on the crypto sector in the United States. Hong Kong is now competing with Dubai and Singapore to become one of the most attractive locations for crypto companies.
