As received by sources, Hong Kong’s monetary secretary, Paul Chan, has emphasized the need to continue developing the Web3 industry, despite recent market fluctuations. In his blog post on April 9, Paul Chan, the financial secretary of Hong Kong, has disclosed that one of the significant aspects he presented in the city’s budget was to promote the Web3 industry’s further expansion and application.
To facilitate the innovative development of Web3, Hong Kong will follow a strategy that stresses proper regulation and development promotion. In addition, the city plans to concentrate on financial security, controlling systemic risks, and implementing measures to educate and protect investors while combating anti-money laundering.
Meanwhile, the Securities and Futures Commission (SFC) of Hong Kong proposed regulations for cryptocurrency exchanges that are expected to take effect in June. Hong Kong’s push towards developing the Web3 industry is gaining momentum, with cryptocurrency exchange Gate.io announcing plans to launch a presence in the city following the local government’s planned cash injection of HKD 50 million ($6.4 million) into Web3 in the 2023-24 budget.
This move by Gate.io comes as the financial secretary of Hong Kong, Paul Chan, emphasized in his latest blog post that it is the “right time” for the city to push forward with Web3, despite market fluctuations. Chan compares the industry’s current situation to the early days of the internet in the 2000s, where after the initial hype and eventual bubble burst, market participants became calmer and focused on innovation, value creation, and practical application, contributing to improving the real economy’s quality.
Chan’s crypto regulation approach is more relaxed than the US, which has taken a more hardline reaction. As a result, there is the assumption that the epicenter of gravity of the crypto industry may move to Hong Kong. In his latest post, Chan acknowledges that the road to the invention and the technological transition has never been smooth sailing, but he believes that by continuing to try, fresh solutions and ways out can be found. Therefore, the time is right for Hong Kong to continue progressing with Web3 development.
