Hong Kong stacks Web3 task force with top finance regulators

Hong Kong has given its new Web3 task force a mandate to inspire digital asset development across the city-state

July 3, 2023 06:59 am

zhu difeng/Shutterstock modified by Blockworks

The Hong Kong government now has a task force for Web3 development, part of the city-state’s bid to capture potential growth associated with crypto.

The task force, under the leadership of Financial Secretary Paul Chan, comprises 15 non-official members. These members include university professors, key government officials and financial regulators, representing the collaborative efforts of diverse sectors.

Financial Secretary Chan lauded the potential of blockchain, the backbone of Web3, saying in a statement that its characteristics “such as disintermediation, security, transparency, and cost-efficiency, pave the way for unparalleled innovation.”

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The idea is that Web3 could address and overcome challenges within sectors like finance, trade, business operations and even daily life.

Notable task force members include the CEO of the Hong Kong Monetary Authority (the central bank), CEO of the Securities and Futures Commission and the CEO of Hong Kong Exchanges and Clearing. Yat Siu, chairman of metaverse firm Animoca Brands, is also a “non-official” member.

Chan expressed that Hong Kong aspires to be a key part of the Web3 landscape, supporting companies and talent as part of a local ecosystem.

Hong Kong released a policy statement last October about the future of crypto (referred to as “virtual assets”).

Fast forward to the 2023-24 budget announcement in February, and the Financial Secretary announced he would set up a task force on virtual asset development, bringing in members from the relevant policy bureaus. That task force is now in effect.

Hong Kong is again attempting to position itself as a hotspot for crypto. And although it’s early days, global crypto exchanges including Huobi, OKX and BitMEX have recently flagged intent to set up in the region.

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