According to industry experts, Hong Kong is attracting emerging technology sectors such as cryptocurrencies, blockchain technology, and Web3, drawing them away from the United States.
By taking favorable steps in the past year, Hong Kong has created a welcoming environment for Web3 development and enabled retail investment in crypto. Additionally, a Task Force was established to promote Web3 development.
Yat Siu, Co-Founder of Animoca Brands, a Web3 investment firm, was invited to become an advisor to the Task Force. The Task Force will directly engage with financial regulators and government officials. Siu emphasized Hong Kong's evolving attitude towards crypto and Web3, stating that the city is well-positioned to attract entrepreneurs and established companies.
On the other hand, Siu highlighted the regulatory uncertainties faced by many US companies, particularly with recent SEC charges against Coinbase and Binance.US for offering unregistered securities. This has provided Hong Kong with an opportunity to lead in Web3 development.
In the past, Hong Kong had avoided the crypto sector and had unwelcoming policies. However, with the help of industry advocates, these policies have recently been overturned. Siu praised the government's agility in adapting its position and including Web3 enthusiasts in the Task Force.
Regarding his invitation to join the Task Force, Siu stated:
“I am honored to be appointed to the Task Force and I look forward to contributing to this forward-thinking initiative. The Task Force firmly establishes Hong Kong as the leading example of a mature and highly modernized economy that embraces the remarkable opportunities presented by Web3, blockchain, virtual assets, and the open metaverse.”
Hong Kong's Web3 Task Force is dynamic, holding regular meetings with various blockchain, crypto, and Web3 working groups. Under a two-year agreement with the Hong Kong government, the Task Force will provide advice on industry development.
Siu envisions the Task Force playing a vital role in driving sector development by nurturing new talent and promoting blockchain technology solutions in educational institutions.
Efforts to develop the Web3 sector in Hong Kong have yielded positive results. Cyberport, a technology-focused hub, has attracted over 150 companies this year that are focused on Web3 development. These companies are investing substantial amounts, ranging from 2 to 25 million USD, to acquire licenses as virtual asset service providers in Hong Kong.
Hong Kong's proactive approach, clear regulatory framework, and commitment to fostering innovation are paving the way for a unique advantage in the global arena of blockchain, cryptocurrencies, and Web3. This advantageous position has the potential to entice businesses away from the United States and establish Hong Kong as a prominent hub for these rapidly emerging technologies.