Hong Kong is confident of becoming a hub for the virtual asset sphere in the coming years. What brings this confidence is the role that the government of Hong Kong has assumed over the recent months amid the rise in the adoption of Web3 technologies and applications. This is evident from the speech delivered by Christopher Hui, the Secretary for Financial Services & the Treasury.
Hui was present at the Aspen Digital Web3 Investment Summit that was held on March 20, 2023. He has clearly highlighted in the speech that Hong Kong is leaving no stone unturned to embrace Web3, adding that it is a paradigm shift that will change the way one interacts over the internet.
Moreover, the metaverse relies on the success of Web3. A situation where Hong Kong successfully implements all its policies for Web3 technologies and applications will place the region better for metaverse too. The overall support from the government is in terms of developing the sector and providing comprehensive support to fintech companies.
Reportedly, Hong Kong has over 800 fintech companies ready to deploy their resources in the sector. This is sure to bring innovation in the financial services that will be largely driven by convenience for everyone in the ecosystem. To better highlight this, it is right to say that not just individuals but companies will also benefit from the Web3 sphere provided fintech companies look over the wide range of possibilities for consumers.
One of the recent initiatives by Hong Kong to strengthen its stand across the globe is the implementation Policy Statement on the Development of Virtual Assets (VA).It was set out in the previous year to highlight that the government is committed to establishing an environment that offers sustainability and growth to the segment. Also, the government will be collaborating with regulators to mitigate the risks that come along.
Every action by the relevant authorities of Hong Kong is said to be at par with the global standard. In other words, ventures will barely distinguish regional operations from international operations.
The Policy Statement has started yielding results with more than 80 regional and foreign companies engaged in VA services connecting to enquire about various subjects.A lot of inquiries related to how the policies will actually be implemented, how feasible it is to establish a business, and what are the VISA requirements to admit international talent. Companies belong to categories including, but not limited to, blockchain infrastructure, exchange platforms, and network security. The companies are based in Singapore, the UK, and Canada, among other places.
Hui has also emphasized the success that Cyberport has achieved through housing startups and technology. The establishment of Web3 Hub@Cyberport was accomplished earlier this year, and it now has a number of tech companies working in Web3.
An attempt to implement stablecoins is in the pipeline, tentatively set to conclude in the next year. The Monetary Authority has been tasked with ensuring that all the relevant regulations are in place for stablecoins.
Experts are more likely to pick up the skills, but it will take the next generation to carry forward the work. Hong Kong has, therefore, proposed to bring a fintech Internship Scheme for post-secondary students. The support will be offered in terms of subsidies to eligible students who participate in the GBA and Hong Kong.
Justin Sun has appreciated the move by Hong Kong, saying that they are thrilled to see the commitment and support of the relevant authorities. Justin has further said that Hong Kong is well-placed to lead Asia in the segment, with several startups entering the Web3 segment.
Rightly so, considering that Hui has mentioned in the statement facilitating a better grasp on the development by announcing a $50 million budget. It is expected to cover all the major international events and promote cooperation among businesses working in different sectors.