Now is the “right time” for Hong Kong to push forward with Web3 despite crypto market fluctuations, according to Hong Kong Financial Secretary Paul Chan.
on april 9 Blog In his post, Chan explained that one of the three main directions he has proposed in the city's budget was for the further development and application of Web3.
Translated, Chan wrote that in order for "Web3 to consistently take the path of innovative development," Hong Kong "will adopt a strategy that emphasizes both 'proper regulation' and 'development promotion'."
Chan says the region also plans to focus on financial security, prevent systemic risks and focus on investor education, protection and anti-money laundering measures.
In October last year, the Hong Kong government floated the idea of introducing a bill to regulate cryptocurrencies.
By February 20 this year, the Hong Kong Securities and Futures Commission (SFC), the local securities regulator, published a proposal for a Regime for cryptocurrency exchanges It will come into force in June.
industry has been suffering a wild bear market and setbacks with the exchange collapses and continued scrutiny by regulators.
According to Chan, the industry is simply going through the same process as the Internet in the early 2000s, and after the "bubble burst", market participants became much calmer.
"After the speculation tide subsides, the remaining powerful players will focus more on competing in technological innovation, practical application and value creation, and contribute to improving the quality of the real economy," Chan wrote.
"In the next stage, market participants should develop blockchain technology more deeply, so that its features and advantages of transparency, efficiency, security, disintermediation, deplatformization, and low cost can find broader application scenarios and solve more existing problems. ".
Hong Kong's approach to cryptocurrency regulation stands in stark contrast to that of the United States, which has taken a more hawkish response that is led to speculation that the "center of gravity" of the crypto industry will move to Hong Kong.
Related: Hong Kong Crypto Firms See Interest From Chinese Banks: Report
The Gate.io cryptocurrency exchange has already announced plans to launch a presence in Hong Kong following the local government's planned cash injection of HK$50 million ($6.4 million) into Web3 in the city's 2023-24 budget.
In a March 20 speech in Hong Kong, Treasury and Financial Services Secretary Christian Hui fixed what hong kong has been attracting "interest" from various crypto companies around the world since October 2022.
"The path of innovation and technological change has never been easy," Chan said in his latest post.
"Even if the direction of development is locked, the royal path must be worked out step by step; only if we persist in trying can we find new solutions and new exits," he added.
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