Hong Kong’s Financial Secretary Declares Now Is the 'Right Time' for Web3 Adoption

Finance chief Paul Chan said in a blog post that despite recent volatility in crypto, now is the time to push forward Web3 technologies.

AccessTimeIconApr 10, 2023 at 4:21 p.m. UTC
Updated Apr 10, 2023 at 5:57 p.m. UTC
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Hong Kong Financial Secretary Paul Chan said Sunday in a blog post that although crypto markets have been highly volatile, it’s the “right time” to push Web3 adoption in the Chinese administrative region.

Chan said that in planning Hong Kong's budget he identified Web3 technologies as one of three focus areas to target.

The secretary said the cryptocurrency industry reminds him of the early days of the internet in the 2000s, with a large “bubble” that burst and weeded out players. As a result, the market was quieter and real-world use cases could be promoted.

“In order for Web3 to steadily take the road of innovative development, we will adopt a strategy that emphasizes both ‘proper regulation’ and ‘promoting development,’” said Chan. “In terms of proper supervision, in addition to ensuring financial security and preventing systemic risks, we will also do a good job in investor education and protection, and anti-money laundering.”

Chan noted that Hong Kong will host the Digital Economy Summit this week, a two-day event with a focus on analyzing the adoption of Web3 technologies at a state and global level.

Hong Kong officials have been laying plans to accelerate the adoption of Web3 and cryptocurrency. In February, Chan set aside $6.4 million of Hong Kong’s annual budget to be put towards investing in Web3 technologies.

Early Monday morning, crypto exchange Bitget created a $100 million fund to focus on Asian countries adopting Web3 technologies because, it said, regulations in the U.S. have forced many companies to look overseas. Meanwhile, Hong Kong’s recent licensing changes for crypto exchanges are considered a possible positive sign for growth in Asia.

Edited by Toby Leah Bochan.


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Cam Thompson

Cam Thompson was a news reporter at CoinDesk.

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