Experts in the industry believe that Hong Kong's evolving stance on blockchain technology, cryptocurrencies, and Web3 has the potential to attract businesses away from the United States. In recent years, the city has taken steps to support the Web3 space and facilitate retail investment in cryptocurrencies . One example is the establishment of a working group dedicated to promoting Web3 development. Yat Siu, co-founder of Web3 investment firm Animoca Brands, is among 15 industry experts serving as advisors to this task force, engaging with government officials and regulators. ators. Siu highlights Hong Kong's changing attitudes and sees it as an attractive jurisdiction for startups and established companies.
While acknowledging the importance of the US in the Web3 race, Siu notes that many companies in the industry operate with a sense of fear due to the lack of clear regulations. Recent actions by the US Securities and Exchange Commission (SEC) against Binance.US and Coinbase for alleged unregistered securities offerings have added to the uncertainty. Siu states that compared to other jurisdictions like Hong Kong, Japan, the Middle East, and Europe, the SEC's inconsistency hinders the US from becoming a major destination for industry companies.
Hong Kong has historically maintained some distance from the cryptocurrency space but has gradually shifted its stance. After consultations with industry supporters, the city recently overturned a restrictive policy banning retail investment in cryptocurrencies. Siu acknowledges s the government's agility in changing its position and expresses pleasant surprise at the turnout of Web3 supporters in the working group. This demonstrates Hong Kong's commitment to nursing the industry.
The Web3 working group has yet to hold its first meeting, but Siu anticipates regular interactions with other cryptocurrency, blockchain, and Web3 working groups in Hong Kong. The members have signed a two-year agreement with the government and will provide advice on advancing the industry. Siu envisions the group promoting industry growth by developing talent and encouraging educational institutions to explore blockchain solutions. Establishing closer relationships with governments through such collaborations can further the adoption of Web3 technology.
Hong Kong's efforts to ignite the Web3 industry have yielded positive results, with Cyberport attracting over 150 Web3 companies this year. These companies reportedly invested millions of dollars in obtaining virtual asset service provider licenses to operate within the city.
