Hong Kong Aims to Become a Web3 Hub: G-Rocket to Attract 1,000 Startups

Hong Kong is making a bold move to position itself as a leading global hub for Web3 innovation. Imagine a vibrant ecosystem buzzing with blockchain startups, decentralized applications, and the next generation of the internet taking shape. That’s the vision Hong Kong is chasing, and a startup accelerator called G-Rocket is stepping up to fuel this ambition in a big way.

G-Rocket’s Ambitious Plan: 1,000 Web3 Startups in 3 Years

G-Rocket, co-founded by Hong Kong legislative council member Jonny Ng Kit-Chong, has announced an ambitious initiative: the “Hong Kong Web 3.0 Hub” program. Their goal? To attract a staggering 1,000 Web3 startups to Hong Kong over the next three years. This isn’t just about numbers; it’s about building a thriving Web3 ecosystem in the heart of Asia.

Casper Wong, CEO of G-Rocket, highlighted the program’s initial phase, aiming to support 100 Web3 startups in getting off the ground. But the long-term vision is much larger – a tenfold increase to reach 1,000 startups within three years. This commitment underscores Hong Kong’s serious intent to become a major player in the Web3 space.

What’s the Attraction? Support and Resources for Web3 Pioneers

Attracting 1,000 startups is no small feat. So, what’s G-Rocket offering to entice Web3 entrepreneurs to set up shop in Hong Kong? The answer lies in a comprehensive support system designed to remove hurdles and accelerate growth. G-Rocket is collaborating with key players to provide startups with crucial resources, including:

• Banking Solutions: Access to financial services is paramount for any business, especially in the rapidly evolving Web3 space. G-Rocket is partnering with virtual ZA Bank to provide tailored banking solutions for Web3 startups. This addresses a critical need, as traditional banking can sometimes be hesitant to engage with crypto-related businesses.
• Government Services: Navigating government regulations and accessing relevant services can be complex. G-Rocket aims to streamline this process, helping startups interact efficiently with government bodies and access necessary support programs.
• Office Space: A physical presence and collaborative workspace are essential for fostering innovation and community. Through partnerships with Cyberport, a government-run incubator, and property giant New World Development, G-Rocket will help startups secure office space in Hong Kong. This provides a tangible base for operations and encourages networking within the Web3 community.

Hong Kong’s Broader Web3 Ambition: A Pro-Crypto Stance

G-Rocket’s initiative is not happening in isolation. It’s part of a larger, strategic push by the Hong Kong government to establish the city as a leading crypto hub, rivaling even Singapore. This ambition is reflected in recent regulatory developments that signal a welcoming environment for the digital asset industry.

Here’s a glimpse into Hong Kong’s proactive approach:

• Progressive Regulatory Proposals: The Securities and Futures Commission (SFC) of Hong Kong, under the leadership of Elizabeth Wong, head of the fintech unit, has been rolling out progressive regulatory proposals. These include the legalization of virtual asset trading, signaling a clear intent to embrace the crypto industry within a regulated framework.
• Legalizing Virtual Asset Trading: The move to legalize virtual asset trading is a significant step, creating a clear pathway for crypto businesses to operate legally and attract investment in Hong Kong.
• “Crash Barriers” for Sustainable Innovation: The government has emphasized a balanced approach, aiming to foster innovation while implementing necessary safeguards. As stated in an October 31 announcement, the goal is to “put in place timely and necessary crash barriers in accordance with international standards, so that virtual asset innovations can thrive in Hong Kong in a sustainable manner.”
• Crypto ETF Listings: Hong Kong’s SFC has also approved listings for Exchange Traded Funds (ETFs) that offer exposure to Bitcoin (BTC) and Ether (ETH). This move opens up crypto investments to a wider range of investors through regulated and familiar investment vehicles. CSOP Asset Management was among the first to launch such ETFs in Hong Kong.
• AML and Terrorist Financing Regulations: Demonstrating a commitment to responsible crypto regulation, Hong Kong’s legislative council amended its anti-money laundering (AML) and terrorist financing system on December 8. This update brings virtual asset service providers under the same regulatory umbrella as traditional financial institutions, enhancing security and trust in the sector.

Why Hong Kong? Post-Pandemic Recovery and Web3 Opportunity

Casper Wong’s statement, “In the post-pandemic era, we hope to help bring good companies and talent back to Hong Kong,” highlights a crucial context. Hong Kong, like many global hubs, is looking to revitalize its economy in the wake of the pandemic. Web3 presents a significant opportunity for economic growth, job creation, and technological advancement. By actively courting Web3 startups, Hong Kong is positioning itself at the forefront of this transformative wave.

Looking Ahead: Hong Kong as a Web3 Destination

Hong Kong’s commitment to becoming a Web3 hub is more than just talk. The government’s proactive regulatory stance, coupled with initiatives like G-Rocket’s “Hong Kong Web 3.0 Hub,” paints a picture of a city determined to embrace the future of the internet. With its strategic location, robust financial infrastructure, and now, a welcoming regulatory environment for crypto, Hong Kong is poised to become a major destination for Web3 startups and a key driver of Web3 innovation in Asia and globally.

Will Hong Kong succeed in attracting 1,000 Web3 startups in the next three years? Only time will tell. But the pieces are falling into place, and the city’s ambition is clear. Keep an eye on Hong Kong – it’s shaping up to be a dynamic center for the Web3 revolution.