The Hong Kong government announced the launch of a task force aimed at fostering the development of the Web3 ecosystem.
The government of Hong Kong said in a press release it has set up a task force to facilitate the development of the Web3 ecosystem in the city. Financial Secretary Paul Chan will head the squad, including other official and non-government members.
Hong Kong’s Financial Secretary to Spearhead Web3 Task Force
On Monday, Hong Kong announced the establishment of a special task force intended to promote Web3 development in the special administrative region. The team, led by Hong Kong’s financial secretary Paul Chan, will consist of 15 non-official members from Web3-related sectors and key government executives.
“The blockchain technology underpinning Web3 features characteristics in respect of disintermediation, security, transparency, and low cost. It has the potential to solve many difficulties and pain points encountered in finance, trade, business operations, and even day-to-day life.”
The move comes months after the Hong Kong government released the Policy Statement on Development of Virtual Assets (VAs), outlining its approach towards regulating the Web3 and digital assets sectors. Given that VA service providers play a key role in the Web3 ecosystem, Chan set up a task force to offer recommendations on the sustainable and responsible development of this market in Hong Kong, the government said in the press release.
Hong Kong’s Web3 Efforts
The launch of a Web3 task force marks the latest in a series of efforts by the Hong Kong government to promote and facilitate the development of the Web3 sector in the city. In October 2022, the government said it intended to legalize crypto retail trading via a mandatory licensing program.
Earlier this year, Chan announced the government would allocate $6.4 million to advance the development of the Web3 ecosystem and unlock the potential of the so-called “third generation internet.” The funding will be used to organize large international seminars and workshops for young Web3 entrepreneurs, and for promoting cross-sectoral business cooperation.
The moves represent part of Hong Kong’s broader aim to become a fintech and Web3 hub in the region after facing headwinds amid China’s crackdown on crypto in recent years. More recently, Hong Kong’s central bank conducted a public consultation on a regulatory framework for stablecoins, with plans to launch one by the end of 2024.