Hong Kong’s Growing Attraction to Blockchain Technology, Cryptocurrencies and Web3

Industry experts believe that Hong Kong’s evolving perspective on blockchain technology, cryptocurrencies and Web3 could draw businesses away from the United States.

The city has made a series of advancements in the last year to cultivate the development of the Web3 space and enable retail investment into cryptocurrencies. This includes the formation of the Task Force on Promoting Web3 Development, which has invited Yat Siu, a co-founder of Web3 investment firm Animoca Brands, to be one of its 15 advisors.

In a comprehensive and exclusive interview with Cointelegraph, Siu highlighted the gradual shift in Hong Kong’s attitude towards crypto and Web3 in recent years, which has put the city in a unique position to attract startups and established firms to its jurisdiction.

Crypto Regulatory Clarity

Despite the U.S. not being counted out in the Web3 race, many companies in the crypto industry are operating “under a regime of fear” due to a lack of regulatory clarity, according to Siu. This has been further compounded by the SEC’s charges against Binance.US and Coinbase for various unregistered securities offerings.

Hong Kong has seen an opportunity to take the lead in Web3 development, while the U.S. has seemingly “self-sabotaged” its potential to be a prime destination for crypto companies. The Hong Kong government has previously held the crypto space at arm’s length, but recently overturned restrictive policies that disallowed retail investment into crypto currencies after engaging in conversations with industry proponents.

Siu noted that the government has shown a level of “agility” in its changing stance towards the crypto industry, considering it had not always been welcoming of crypto companies.

Web3 Task Force in Hong Kong

Hong Kong’s Web3 task force is likely to be ever-changing, according to Siu, who was pleasantly surprised by the inclusion of many Web3 supporters, suggesting the city’s commitment to nurturing the sector.

The working group has yet to have its first meeting, and Siu expects to hold monthly or quarterly meetings with the various crypto, blockchain and Web3 working groups that have been formed in Hong Kong.

The members of the Web3 task force have agreed to a two-year contract with the Hong Kong government, and are providing advice on how to promote the industry. Siu envisions the task force encouraging the growth of the sector by cultivating talent and promoting the exploration of blockchain solutions in tertiary education institutions.

As reported earlier, Hong Kong’s efforts to foster the Web3 sector have seen Cyberport attract over 150 Web3 companies this year, and companies reportedly spend between $2–25 million to obtain virtual asset service provider licenses to operate in the city.

Categorized in:

Tagged in: