Will the establishment of a Web3 development working group in Hong Kong become the next Crypto center?

Hong Kong has taken another major step towards becoming a hub for Crypto and blockchain technology.

According to a recent statement, the Hong Kong government has announced the establishment of a group called the "Web3 Development Working Group", dedicated to promoting the development of Web3, especially its ethical development.

The working group is made up of 15 industry figures and 11 key government officials, including Hong Kong's Financial Secretary Paul Chan. In addition, there are 15 unofficial members including industry experts.

It is reported that the working group will have two years to carry out its work.

The statement mentioned that the Financial Secretary had announced in the 2023-24 Budget the establishment of a task force to make recommendations on the sustainable and responsible development of Web3 in Hong Kong.

Chen Maobo has been an advocate of Crypto and blockchain technology. He said that Hong Kong needs to seize the "golden opportunity" brought by Web3.

"Hong Kong seeks to lead and drive innovation and create more new application models, and strives to attract top companies and talents to build a thriving ecosystem."

He also pointed out, "The task force brings together leaders and professionals from relevant industries, and I believe their valuable suggestions will help Hong Kong develop into a Web3 hub."

For the efforts made by the Hong Kong government, the market seems to have given a positive response.

In fact, since the release of the policy statement on virtual assets in October 2022, more than 80 virtual asset-related companies have expressed interest in establishing their businesses in Hong Kong.

Just recently, Hong Kong Legislative Council member Wu Jiezhuang invited a global virtual asset trading platform to come to Hong Kong to apply for a virtual asset service provider license.

He said in a tweet on June 10, "I hereby invite all virtual asset trading operators in the world, including Coinbase, to come to Hong Kong to apply for an official trading platform and make further development plans."

The invitation came shortly after the SEC took legal action against Coinbase.

Hong Kong also implemented a new crypto regulatory framework last month.

The new rules no longer impose high threshold trading restrictions, and will allow retail investors to trade virtual assets.

In addition, Hong Kong Securities and Futures Commission will also start to provide licenses to Crypto exchanges.

The region’s improving regulatory environment has already caught the attention of some large crypto firms.

Last week, U.S.-based stablecoin issuer Circle said it was closely monitoring crypto policies in Hong Kong.

Circle’s CEO Jeremy Allaire said, “What’s happening in Hong Kong may be indicative of what’s going on in these markets in Greater China**.”

“We see a huge demand for digital dollars in emerging markets, and Asia is at the center of that demand.”

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