• Hong Kong authorities have unveiled plans to set aside HK$50 million (US$6.4 million) to boost the city’s Web3 sector.
• Paul Chan, the city’s Financial Secretary, will allocate $50 million to expedite the Web3 ecosystem development.
• The Securities and Futures Commission (SFC) has suggested it will pursue plans to enable retail investors to access exchange-traded funds (ETFs), which track cryptoasset futures.
Hong Kong Boosting its Web3 Sector
Hong Kong authorities have announced plans to invest HK$50 million (US$6.4 million) into the Web3 sector in order to establish itself as a leading crypto hub in Asia. Paul Chan, Hong Kong’s Financial Secretary, stated that this investment will be used for various projects such as organizing international seminars and arranging workshops for young people in order to better grasp frontier developments and promote cross-sectoral business co-operation. Additionally, Chan is planning on establishing a task force on VA development with members from relevant policy bureaux, financial regulators and market participants in order to provide recommendations on the sustainable and responsible development of the sector.
Cyberport Incubator
In line with these efforts, Cyberport – a government-run incubator – created a new blockchain-focused initiative called ‘Web3 Hub@Cyberport’ earlier this year which could benefit from this investment as well. This move is expected to draw more innovative enterprises with potential towards Hong Kong as well as help existing companies expand their operations further.
Securities and Futures Commission Plans
The Securities and Futures Commission (SFC), Hong Kong’s top securities regulator has also indicated that they are determinedly pursuing plans to enable retail investors access exchange-traded funds (ETFs), which track cryptoassets futures. This measure is expected take place by December 2022 when two ETFs tracking Bitcoin will become available for purchase through CSOP Asset Management’s Bitc ETF product suite.
Financial Secretary’s Statement
Paul Chan has expressed confidence regarding these measures stating that: “Our policy statement released recently is conducive to building such an environment and has made the industry very hopeful about the development of Hong Kong’s virtual asset market“. In addition, he assured that FTX’s abrupt collapse won’t hamper any future progress in regards of cryptocurrencies or blockchain technology within Hong Kong either.
Conclusion
It is clear that Hong Kong remains committed towards becoming one of Asia’s leading cryptocurrency hubs despite recent market turbulences experienced across the world due its enviable combination of advanced technological infrastructure along with favourable tax laws and regulations relating cryptocurrencies – making it an attractive option for startups looking at entering the space or expanding their current operations further into Asia Pacific region especially given its proximity & connection with Mainland China too!