The article discusses Hong Kong's emergence as a technological superpower in the Web3 space, positioning itself to become the world's Web3 hub. Hong Kong's ambitious plans, regulation ideologies, and digital trade deals are highlighted as reasons for its dominance. The article mentions the establishment of the Institute of Web 3.0, which focuses on blockchain, regulations, licensing, and the establishment of a Web3 hub. Hong Kong's regulation of DeFi through licensing requirements for decentralised exchanges is discussed, and the importance of regulation, safety, efficiency, and transparency is emphasised. The article also mentions that Hong Kong's biggest virtual bank, ZA, funds crypto start-ups and transfers stablecoins through licensed exchanges. Hong Kong has partnered for digital Web3 trades and invested $1.2B into technology development, with a focus on health tech, AI, and Quantum tech, forming a regulated digital economy. The article concludes that it is still early days in Web3 and tech, and a lot can change, but Hong Kong is positioning itself as a crypto-friendly alternative to competing parties.4 reasons why Hong Kong will dominate Web3.
GM Web Wanders and fellow degens welcome back. It’s important to stay up to date on what’s going on around the world, especially in Web3 and tech. Why? Because knowledge is power, tech is king and in a land so ripe with opportunity it’s nice to know what’s going on.
Today we will be diving into an exciting development over the last week which is the sudden emergence of Hong Kong as a technological superpower in the Web3 space and how they are gearing up to take the space by storm, becoming the world Web3 hub competing with countries like the UK and Dubai. We talk about their ambitious plans, their regulation ideologies, how their banks are moving into crypto and some digital trade deals that may be shifting the balance of power.
In early April 2023, at the Digital Economy Summit in Hong Kong, Chen Dong, Deputy Director at the Liason Office of Central Peoples Government, praised the major cities' push to boost their digital economy, emphasising the importance of blockchain, regulations, licensing and the establishment of a Web3 hub. The Institute of Web 3.0 was founded in late March 23 with an impressive founding board with leaders in energy, mobile communication and Education all being a part of the new association.
Chen reiterates the importance of new tech development saying the focus is on pushing a digital transformation in Web3, AI, Quantum computing and semiconductors. All of which will play a huge role in the mainstream adoption of this next evolution of the internet.
Cai Zhounghui, an official of the Hong Kong Security and Futures Commission, the SFC, was met with almost dire disbelief when he said that DeFi needs regulation. Shocker. Cai’s plan is to have decentralised exchanges require to apply for licenses to run their platforms, it’s a little crazy to think that these billion-dollar businesses have little to no rules at the moment which has made crashes like FTX and Luna possible.
Regulation is important, there’s no doubt about it, we advocate for a transparent regulated space that allows for a free, unencumbered flow of financial recourses anywhere in the world with no limits, the regulation is on the businesses running the exchanges which is beneficial in the long run for mainstream adoption of the new tech.
Financial secretary Paul Chan is all in saying Web3 must be protected and volatility should be embraced. The visionaries and disruptors currently working in the space need to work on innovation, application and value creation to improve the quality of this very real economy. Safety, efficiency and transparency are to be of the utmost importance in this new decentralised landscape, partnered with suitable regulation and up-to-date education designed to incorporate this new technology is vital to its longevity in user acquisition and overall investor success.
Speaking of financial security, the biggest virtual bank in Hong Kong ‘ZA’ now funds crypto start-ups and transfers stablecoins. The crypto-to-fiat transfer service will work through licensed exchanges to assist in the regulation of Web3 companies. The major city has been struggling to re-balance itself following the pandemic and is continuously positioning itself, ambitiously, as a crypto-friendly alternative to the competing parties. I know a few companies, in crypto that base abroad maybe China is the next place on the list for unicorn projects.
In addition to the colossal steps being taken by Hong Kong and the Chinese government, Hong Kong has partnered for digital Web3 trades and the overall development of innovative science and technology intersections. Hong Kong has already invested $1.2B into technology development since the start of 2023, splitting between health tech, AI, and Quantum tech and forming a regulated digital economy.
Since the pandemic, we’ve heard a lot about new technology hubs and we want to explore them all. China seems to be keeping their promises of adding regulation and establishing solid foundations for the implementation of the new technologies. Although, it’s still early days and a lot can change in Web3 and tech in a very short period of time, as we all well know.
That’s all for the round-up, if there's anything else you want to see or any new news you’ve heard of in the space let me know using any of the links below! I’d love to hear what you think.
