Hong Kong has taken on Web3 development and made specific changes in the budget to pace Web3 adoption. According to the 2023–2024 budget released on Wednesday, Hong Kong allocated 6.4 million USD to build its Web3 ecosystem.
This comes after gradual steps that have been taken since October 2022. In October, John Lee, the city’s chief executive, disclosed that the government would establish a new investment firm called Hong Kong Investment Corporation Limited in his policy address. As per Lee’s policy address, the government has allocated approximately $3.8 billion (HK$30 billion) for a co-investment fund to lure foreign companies to Hong Kong.
At Hong Kong FinTech Week in November, the city outlined its goals to become a focus for virtual assets again. Retail investors will also have a choice of big-cap crypto tokens, based on a consultation document released by the Hong Kong Securities and Futures Commission (SFC) on Monday. The SFC also declared that all marketplaces for digital assets in Hong Kong and actively promoting to investors there must have a license.
Retail consumers must pass a knowledge assessment or just be granted access when training is completed, according to the plan, which will be presented for six weeks to garner feedback via “interested parties.”
The industry has welcomed Hong Kong’s recent legislative changes, and institutional and retail-focused cryptocurrency companies are eager to open offices there. The biggest bank in Southeast Asia, DBS, revealed last week that it is applying for the license necessary to provide cryptocurrency trading to Hong Kong clients. Paul Chan, the financial secretary for Hong Kong, also revealed the formation of a task force comprising representatives from the sector, regulatory agencies, and policy bureaux to build virtual assets.
The Securities and Futures Commission of Hong Kong released its proposed regulations for virtual asset companies on Monday. The recent big announcement in the budget is also a showcase of Hong Kong’s plans with Web3 technologies. The allocated HK$50 million will be used to host yielding international conferences, cross-sector commercial partnerships, and youth programs.