Right time for Web3 push in Hong Kong despite market swings Financial Secretary

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Now is the “right time” for Hong Kong to push Web3 forward despite fluctuations in the crypto market, according to Hong Kong Financial Secretary Paul Chan.

In an April 9 blog post, Chan explained that one of the three main directions he proposed in the city budget was the continued development and application of Web3.

Translated, Chan wrote that in order for “Web3 to steadily take the path of innovative development”, Hong Kong “will adopt a strategy that emphasizes both ‘proper regulation’ and ‘promotion of development'”.

Chan says the region also plans to focus on financial security, systemic risk prevention and focus on investor education, protection and anti-money laundering measures.

Paul Chan appearing via Zoom to deliver the keynote address for a financial conference in Hong Kong. Source: Twitter

In October last year, the Hong Kong government floated the idea of ​​introducing a bill to regulate crypto.

On February 20 this year, the Hong Kong Securities and Futures Commission (SFC), the local securities regulator, published a proposed regime for cryptocurrency exchanges that is expected to come into effect in June.

The industry has suffered from a wild bear market and setbacks with exchange meltdowns and continued scrutiny from regulators.

According to Chan, the industry is simply going through the same process as the Internet in the early 2000s, and after the “bubble burst,” market players became much calmer.

“After speculation recedes, the remaining powerful players will focus more on competing in technological innovation, practical application and value creation, and help improve the quality of the real economy,” Chan wrote. .

“In the next stage, market players should develop blockchain technology more deeply, so that its characteristics and advantages of transparency, efficiency, security, disintermediation, de-platforming and low cost can find scenarios of success. wider application and solve more existing problems.”

Hong Kong’s approach to crypto regulation stands in stark contrast to that of the United States, which has taken a more drastic response that has led to speculation that the “center of gravity” of the crypto industry will move to Hong Kong.

Related: Hong Kong Crypto Firms See Interest From Chinese Banks: Report

Cryptocurrency exchange Gate.io has already announced plans to launch a presence in Hong Kong following the planned HK$50 million ($6.4 million) cash injection from the local government in Web3 in the city’s 2023-2024 budget.

In a March 20 speech in Hong Kong, Financial Services and Treasury Secretary Christian Hui said that Hong Kong has been attracting “interest” from various crypto firms around the world since October 2022.

“The road to innovation and technological change has never been easy,” Chan said in his final post.

“Even if the direction of development is locked, the real path must be charted step by step; only by persisting in trying can we find new solutions and new ways out,” he added.

Magazine: U.S. Law Enforcement Agencies Ramp Up the Pressure on Crypto-Related Crime

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