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Hong Kong Establishes Web3 Development Task Force

BY Sarah Marquart

July 03, 2023

Authorities in Hong Kong have established a dedicated task force aimed at promoting the development of Web3. The initiative, announced by the Government of the Hong Kong Special Administrative Region, signals the city’s determination to position itself as a leading player in the Web3 space. Led by Hong Kong’s financial secretary, Paul Chan, along with other government officials and regulators, the task force comprises 15 non-official members, including industry experts and key figures from the financial sector.

Becoming a Web3 hub

Hong Kong has been striving to become a Web3 leader, with the announcement of an official policy statement on Virtual Assets in 2022. The positive response from the market to this policy prompted the creation of the new Web3 task force. The group will be responsible for providing recommendations to ensure the sustainable and responsible development of Web3 in the region.

Notable task force members include the CEO of the Hong Kong Monetary Authority, the CEO of the Securities and Futures Commission, and the CEO of Hong Kong Exchanges and Clearing. Yat Siu, chairman of metaverse firm Animoca Brands, also serves as a non-official member. Their collective participation reflects the collaborative efforts between academia, government bodies, and the financial industry.

“With the Task Force bringing together leaders and professionals in the sectors involved, I believe their valuable advice will help Hong Kong develop into a Web3 hub,” Chan shared in an official press release.

Chan has long advocated for cryptocurrencies and believes that Hong Kong should seize the opportunities presented by Web3. In a statement, Chan emphasized the potential of blockchain technology to address various challenges.

“The blockchain technology underpinning Web3 features characteristics in respect of disintermediation, security, transparency, and low cost,”  he said. “It has the potential to solve many difficulties and pain points encountered in finance, trade, business operations, and even day-to-day life.”

Crypto-friendly practices

Despite its proximity to China, which has taken a firm stance against internal digital asset initiatives, Hong Kong has persistently pursued its goal of becoming a crypto hub. Earlier this month, the territory launched the Virtual Asset Trading Platform (VATP) handbook, offering clear guidelines for Web3 companies seeking to establish a presence in Hong Kong.

As Hong Kong continues to position itself as a crypto-friendly jurisdiction, global cryptocurrency exchanges such as Huobi, OKX, and BitMEX have expressed their intentions to establish a presence in the region. These developments highlight the city’s commitment to fostering an environment conducive to Web3 innovation and attracting top talent in the field.

With the creation of the task force, Hong Kong aims to tap into the potential growth opportunities presented by Web3, leveraging its status as an international financial center and a metropolis that values innovation and technology. The task force’s work over the next two years will play a pivotal role in shaping Hong Kong’s future in the emerging Web3 landscape.

Editor’s note: This article was written by an nft now staff member in collaboration with OpenAI’s GPT-4.

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