July 25, 2024
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Hong Kong Express Support For Crypto As US Regulator Continues Crackdown

While other regulators, like as the United States Securities Exchange and Commission (SEC), appear to have abandoned crypto, Hong Kong has remained steadfast in its goal to becoming a crypto hub.

Several proposals have been launched by the Hong Kong government in recent months to demonstrate the region’s support for the crypto business. Hong Kong’s Financial Secretary, Paul Chan, recently revealed the government’s intention to invest in the emerging Web3 ecosystem.

Hong Kong’s government contributed HK$50 million ($6.5 million) in the island city’s 2023-24 budget to become an early core contributor to the Web3 ecosystem.  The monies invested were reported to be used to boost numerous necessary sectors that may encourage Web3 adoption, such as cross-sector corporate cooperation, workshop organization, and so on. 

So far, the Island City project has assisted Hong Kong’s efforts to encourage developing technology, cementing the city-state’s position as Asia’s premier financial center. According to a recent Barron story, the Hong Kong Monetary Authority intends to hold a round table discussion with the crypto industry by April 28, 2023. 

Hong Kong’s approach to cryptocurrency has been markedly different from that of other Asian financial centers, such as Singapore, which have been more circumspect in their crypto actions. 

In response to Hong Kong’s efforts to promote the crypto business, Paul Chan stated, “In order for Web3 to consistently take the road of innovative development, we will adopt a strategy that emphasizes both’proper regulation’ and promoting development.”

“Financial security, investor education, and anti-money laundering measures,” Chan added. Kishore Bhindhi, an attorney working in Hong Kong, told Barron that Hong Kong’s efforts demonstrate the region’s desire to become a cryptocurrency hub. Bhindh stated that in the future, the Island City project may focus on the application of crypto to traditional financial services, such as tokenized bonds and securities.