TRON founder Justin Sun praises Hong Kong’s move to provide extended support for the virtual asset (VA) industry. As one of the leading proponents of blockchain technology and cryptocurrency, Sun has been vocal about the need for regulatory support to foster innovation and growth in the sector. Hong Kong’s decision to implement guidelines for VA exchanges and offer a licensing regime for digital asset management firms is seen as a positive step towards establishing a stable and sustainable ecosystem for the emerging industry. With Sun’s commendation, it is expected that Hong Kong will attract more blockchain and crypto companies to its shores.
Hong Kong Government is Driving Towards Becoming a Hub for Web3 and Virtual Assets
Hong Kong aims to become a leading hub for virtual assets globally as the government puts a significant effort into embracing Web3 technologies and applications. Christopher Hui, the Secretary for Financial Services & the Treasury, made this clear during his speech at the Aspen Digital Web3 Investment Summit in March 2023. Hui highlighted that Hong Kong is determined to implement all policies regarding Web3 technologies and applications, emphasizing that it is a paradigm shift that will change the way individuals interact over the internet.
The success of Web3 depends on the implementation of Virtual Assets, and Hong Kong has pledged its support to fintech companies by developing the sector and providing comprehensive backing to companies. The region has over 800 fintech companies that are ready to deploy their resources to the sector. The introduction of Web3 technology and applications to the region will bring innovation to the financial services industry, allowing individuals and companies to access a wide range of possibilities.
Hong Kong’s Policy Statement on the Development of Virtual Assets (VA) is another recent initiative to strengthen its position globally. The statement, established in the previous year, highlights the government’s commitment to establish an environment that promotes the segment’s sustainability and growth, collaborating with regulators to reduce the risks that come with it. Hong Kong’s relevant authorities take actions that are at par with the global standard, ensuring ventures will distinguish regional operations from international operations.
The implementation of the Policy Statement is already beginning to yield results. More than 80 regional and foreign companies enquire about various subjects, including how to implement policies, business feasibility, and VISA requirements to admit international talent. Companies belong to categories including blockchain infrastructure, exchange platforms, and network security, among others, from countries such as Singapore, the UK, and Canada.
Cyberport, a hub that houses startups and technology, has also achieved significant success. Earlier this year, Hong Kong established Web3, and several technology companies are now working in the Web3 space.
The Monetary Authority has been tasked with implementing stablecoins, with all relevant regulations in place. Industry experts can pick up the necessary skills. Still, it will take the next generation to continue the work, which is why Hong Kong has proposed the fintech Internship Scheme for post-secondary students. The support provides subsidies to eligible students who participate in the GBA and Hong Kong.
Justin Sun, CEO of blockchain company TRON, praised Hong Kong’s move, expressing how thrilled he is to see the commitment and support of the relevant authorities. Sun believes that Hong Kong is well-placed to lead Asia in the segment, with several startups entering the Web3 space.
The government announced a budget of $50 million to facilitate a better grasp on development, covering all major international events and promoting cooperation among businesses working in different sectors. It’s evident that Hong Kong’s government is not holding back with the implementation of policies for Web3 technologies and applications.