Hong Kong’s Financial Secretary Paul Chan said that now is ‘the right time’ to develop and promote Web3-ecosystem in the territory, despite volatility in the cryptocurrency markets.
The official said that one of the three main directions he proposed for the city budget was the further integration of Web3 technologies.
According to Chan, Hong Kong plans to focus on financial stability and the prevention of systemic risks, as well as investor education and anti-money-laundering measures.
He also compared the modern digital-asset industry to the internet in the early 2000s. The Hong Kong Financial Secretary noted that the bubble that burst then had made market participants considerably calmer.
“After the exodus of speculation, the remaining influential players will focus more on competition in technological innovation, practical application and value creation, and will contribute to improving the quality of the real economy,” Chan explained.
At the next stage, market participants need to deepen the development of blockchain technology so that its characteristics and advantages can find broader use cases and address more existing problems, he added.
In October 2022, the Hong Kong Financial Services and Treasury Bureau published a statement on easing of restrictions on cryptocurrencies and readiness to engage with virtual-asset service providers.
In January 2023, Chan stated the readiness of the jurisdiction to host cryptocurrency companies from around the world. The official noted that authorities had recently completed work on the licensing regime for the industry.
In February, Chan said that Hong Kong allocate $6.4 million in the annual budget to accelerate the development of the Web3 ecosystem. The funds will also support G-Rocket accelerator, which began operating earlier in the year.
In March it emerged that investors in Hong Kong created the ProDigital Future fund with a target of $100 million to finance the Web3 sector.