Hong Kong Government Establishes Web3.0 Task Force: Balancing Regulation and Promoting Diversified Application Development

Since the Hong Kong government announced its policy manifesto on local virtual asset development in October last year, it has sparked interest from domestic and foreign businesses and investors, paving the way for a new approach to China's long-standing resistance to the cryptocurrency market. In addition to its internationally admired friendly regulations and highly optimized industry environment, authorities also announced on Friday the establishment of a task force dedicated to advancing Web3 development.

Team Members Include Industry Participants, Financial Institutions, and Government Officials

The Hong Kong government announced on Friday the formation of a diverse task force dedicated to the development of the third generation of the internet, Web3.0. The task force is chaired by Financial Secretary Paul Chan Mo-po and consists of 15 unofficial members from the industry, as well as 11 key government officials and representatives from financial regulatory bodies. They will oversee the development of Web3, with a particular focus on corporate ethical responsibilities.

The unofficial members will serve their term starting from July 1, 2023, for a period of two years, during which they will provide recommendations to the government on the sustainable development of Web3.0 in Hong Kong.

Paul Chan Mo-po, the Financial Secretary of Hong Kong and Chairman of the Web3.0 task force, stated that the task force will further promote Hong Kong's leadership in the field of Web3:

Rapid Progress in Hong Kong's Crypto Industry Planning

The statement mentioned that in October last year, the Hong Kong Treasury outlined its policy positions and implementation strategies regarding the thriving crypto industry and ecosystem, which received a significant amount of positive feedback in the market.

In addition to maintaining an open attitude towards the application of virtual asset ETFs and NFTs, initiatives such as tokenization of bond issuances and the pilot program for digital Hong Kong dollars are ongoing in the first half of 2023. This includes consultations on virtual asset trading platforms in February, reports of multiple Chinese banks offering services to crypto companies in March, and the official launch of a clear regulatory framework in June.

The Hong Kong government's friendly stance towards the crypto industry even sparked a frenzy of Hong Kong-related coins in March, with many experiencing significant price surges within days.

According to a report by Cointelegraph, since Hong Kong declared its position, over 80 cryptocurrency firms have expressed interest in establishing a presence or conducting business in Hong Kong, with 23 of them having concrete plans. These companies include cryptocurrency exchanges, blockchain infrastructure providers, and blockchain network security firms, among others.

The Secretary for the Treasury, Christopher Hui, previously explained:

With over 800 fintech companies in Hong Kong and our current status as a global financial center with clear regulatory frameworks, we are already in a leading position in the field of Web3.