The Hong Kong government has created a web3 task force, composed of various market sector representatives and government officials, to draft guidelines for the ethical and sustainable growth of cryptocurrency within the region.
The Hong Kong administration has recently launched a web3 task force. The purpose of this initiative is to draft guidelines for the healthy and ethical growth of cryptocurrency in the region, in line with the principles of sustainable development.
The group, led by Financial Secretary Paul Chan, is composed of 15 non-official representatives from applicable market sectors, along with key governmental officers and financial regulators. This task force will serve for an initial term of two years beginning from July 1, as stated in an announcement last Friday.
This new committee represents a further step in the Hong Kong government’s policy direction, following the publication of their policy statement on the development of virtual assets in October 2022. This statement set forth Hong Kong’s attitude and strategy toward the virtual asset sector.
The Financial Secretary commented on the blockchain technology that forms the basis of web3. Chan outlined how its unique features of disintermediation, security, transparency, and low cost are potentially transformative for sectors like finance, commerce, business processes, and even daily living.
He added that the Hong Kong administration aspires to drive cutting-edge exploration and development while maintaining suitable regulation. Their aim is to assemble premier firms and talent in the sector, thereby fostering a vibrant ecosystem.
Previously, in his 2023-2024 budget speech, Chan expressed the necessity to develop a web3 ecosystem and form a task force dedicated to virtual asset development. The sentiment was reiterated in a recent government report that expressed worry over Hong Kong falling behind East Asia and Gulf countries in terms of web3 development.
Hong Kong’s ambition to be a hub for cryptocurrency development was further underscored by the recent actions of the Hong Kong Monetary Authority (HKMA). The banking regulator has begun encouraging HSBC, Standard Chartered, and Bank of China, which play unique roles as issuers of the city’s currency, to begin accepting cryptocurrency exchanges as customers.
In an additional development highlighting Hong Kong’s potential as a crypto hub, Circle, the company that issues the USDC stablecoin, has also been casting an eye toward the region. Jeremy Allaire, the CEO of Circle, has noted an “enormous demand for digital dollars” in Hong Kong.
