Hong Kong forms task force to foster Web3 development

Hong Kong takes the lead in web3 with a task force that drives ethical development, attracting global companies and fostering a thriving digital ecosystem

By Shashank Bhardwaj

Published: Jul 3, 2023 06:14:01 PM IST

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In a bid to embrace the transformative potential of web3 technology, the government of Hong Kong has announced the establishment of a task force comprising industry participants and government officials. This diverse group of experts will oversee the development of web3 in the region, specifically focusing on promoting its growth sustainably and responsibly.

The task force, comprising 15 industry representatives and 11 key government officials, has been tasked with providing recommendations on the ethical development of web3 in Hong Kong. The initiative was announced by Hong Kong's Financial Secretary, Paul Chan, during the 2023-24 Budget, highlighting the government's commitment to positioning Hong Kong as a frontrunner in the web3 sector.

Chan emphasised Hong Kong's ambition to lead and drive innovative exploration and development in web3. He expressed the government's aim to create new application models and foster a thriving ecosystem by attracting top-notch companies and talent to the region.

The announcement comes after the Hong Kong government released a policy statement on virtual assets in October 2022, which received a positive response from the market. Since then, over 80 virtual asset-related companies have expressed interest in establishing their presence in Hong Kong, recognising the region's potential as a favourable environment for their operations.

Furthermore, Hong Kong has actively promoted itself as an attractive destination for crypto firms. On June 10, Hong Kong Legislative Council member Johnny Ng invited global virtual asset trading platforms to apply for a virtual asset service provider licence in Hong Kong. This move aligns with the Hong Kong Securities and Futures Commission's announcement on May 23, stating that licensed platforms would soon be allowed to cater to retail investors.

The formation of the task force underscores Hong Kong's commitment to nurturing the development of web3 technology while ensuring ethical practices. By bringing together leaders and professionals from various sectors, the task force aims to provide valuable advice and guidance, helping Hong Kong emerge as a prominent web3 hub.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash