Hong Kong is positioning itself as an attractive destination for businesses in the blockchain, cryptocurrency, and Web3 sectors, potentially drawing them away from the United States, according to industry experts.
The city has taken several steps in the past year to foster the development of Web3 and enable retail investment in cryptocurrencies, including the establishment of the Task Force on Promoting Web3 Development.
Yat Siu, co-founder of Web3 investment firm Animoca Brands, has been invited to be an advisor to the task force, which will engage directly with government officials and financial regulators.
Siu emphasized Hong Kong’s evolving attitude towards crypto and Web3, stating that the city is well-positioned to attract startups and established firms.
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In contrast, he noted that many US firms operate under a cloud of regulatory uncertainty, citing recent charges filed by the US Securities and Exchange Commission against Binance.US and Coinbase for alleged unregistered securities offerings.
Hong Kong has seized the opportunity to take a leadership role in driving Web3 development, while the US has seemingly hindered its potential to be a top destination for companies in the sector.
Previously, Hong Kong had maintained a distance from the cryptocurrency space, with restrictive policies only recently overturned after consultations with industry proponents.
Siu commended the government’s agility in adapting its stance towards the industry and its willingness to include numerous Web3 proponents in the task force.
The Web3 task force in Hong Kong is expected to be dynamic, with regular meetings involving various crypto, blockchain, and Web3 working groups.
Task force members have entered into a two-year agreement with the Hong Kong government to provide advice on fostering industry growth.
Siu envisions the task force playing a vital role in driving sector development by nurturing talent and promoting blockchain solutions in educational institutions.
Hong Kong’s efforts to cultivate the Web3 sector have yielded positive results.
Cyberport, a technology-focused hub, has attracted over 150 Web3 firms this year, and companies are reportedly investing substantial amounts, ranging from $2 million to $25 million, to acquire virtual asset service provider licenses in the city.
With its proactive approach, regulatory clarity, and support for innovation, Hong Kong is carving out a distinct advantage in the global landscape of blockchain, cryptocurrencies, and Web3, potentially luring businesses away from the US and positioning itself as a leading hub for these emerging technologies.
