In the midst of the turmoil in America surrounding all the charges against major crypto exchanges Hong Kong is well on its way to boosting Web3 adoption in the region. On June 30, the government made known that it sets up a specialized team called “Task Force on Promotion Web3 Development”.
15 team members focus on Web3
The team will consist of fifteen members, each with different areas of expertise and will be led by Paul Chan, the financial secretary. The goal is to work on Web3 developments over a period of two years. Chan had this to say about Web3 and its underlying blockchain technology:
The blockchain technology underlying Web3 has characteristics related to disintermediation, security, transparency and low cost. It has the potential to solve many difficulties and pain points encountered in finance, trading, business management and even daily life.
Hong Kong offers crypto licenses
The region has recently also carried out other pro crypto and blockchain actions. For example, exchanges can since 1 June officially apply for a license. Although this regulation comes with a high cost, it can affect the global crypto sector and attract new investors. However, this legislation does have strict rules; only trusted tokens are allowed to be traded and certain services, such as interest on tokens by staking and stablecoin trading, are currently not allowed. Despite these restrictions and the high costs, many companies are eager to operate in Hong Kong, especially given the increasingly strict regulations in the United States.
There are rumors that China, which informally controls Hong Kong, could follow this path. Despite the publication of aWeb3 White Paperby the Chinese government at the end of May, however, there are no indications that China is preparing for a similar crypto adventure. After all, crypto trading and mining have been banned in China since 2021.
