Hong Kong is allocating HK$50 million (US$6.37 million) to develop its Web3 sector, the special administrative region’s Financial Secretary Paul Chan announced Wednesday during his annual budget speech at the Legislative Council.
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Fast facts
- The investments put into Web3 growth will be used for organizing major international seminars, encouraging cross-sectoral business cooperation and workshops related to the field, Chan said in his speech.
- “The third generation Internet [Web3], currently in its start-up period, has the same huge potential,” said Chan, who dubbed the wave as a “golden opportunity” to lead innovative development.
- Chan will establish and lead a task force on virtual asset development, which is integral to the Web3 ecosystem, to provide guidance on responsible growth of the virtual asset sector.
- In a policy statement published last October, Hong Kong’s Financial Services and the Treasury Bureau stated that the region’s regulatory development will gear towards facilitating the virtual asset sector while mitigating risks such as money laundering and terrorist financing.
- Hong Kong’s Securities and Futures Commission published proposals Monday for a new crypto licensing regime that may allow retail investors to trade certain “large-cap tokens” on compliant platforms from June. Hong Kong currently limits crypto investing on local platforms to professional investors with a portfolio of HK$8 million or above.
- Crypto exchanges Huobi Global and OKX have recently announced that they will comply with the local licensing regime to operate in Hong Kong.
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