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  • Writer's pictureJamal Saafir

King Kong Ain’t Got Nothin On Hong Kong

Before we go into this story, I first want to state that China has the largest population in the world according to The United States Census Bureau. Why I make mention of that before going into this article, is because Hong Kong, China is going full steam ahead into crypto adoption and development. This is not a small thing in the way of adoption, but quite the opposite. Hong Kong has given another crypto/blockchain bullish signal for the future and its plans to be the potential world leader in this arena.

As announced by The Government of Hong Kong Special Administrative Region, the Hong Kong Government announced on June 30th, 2023, the establishment of the Task Force on Promoting Web3 Development. Chaired by the Financial Secretary, the Task Force comprises 15 non-official members from the relevant market sectors, with the participation of key government officials and financial regulators concerned. The term of the non-official members will take effect from July 1, 2023, for two years.

The Government issued the Policy Statement on Development of Virtual Assets (VAs) in Hong Kong in October 2022, setting out the policy stance and approach towards the sector, to which the market has responded favorably. As VAs are an integral part of a vibrant Web3 ecosystem, the Financial Secretary has announced in the 2023-24 Budget the establishment of the Task Force to provide recommendations on the sustainable and responsible development of Web3 in Hong Kong.

The Financial Secretary, Mr Paul Chan, said, "The blockchain technology underpinning Web3 features characteristics in respect of disintermediation, security, transparency, and low cost. It has the potential to solve many difficulties and pain points encountered in finance, trade, business operations and even day-to-day life. Hong Kong is an international financial center and a metropolis attaching importance to innovation and technology, and embracing the megatrend of Web3 development. Premised on a balance between appropriate regulation and promoting development, Hong Kong seeks to lead and drive innovative exploration and development, create more new application models, and strives to draw together top-notch companies and talent in the arena to build a thriving ecosystem. With the Task Force bringing together leaders and professionals in the sectors involved, I believe their valuable advice will help Hong Kong develop into a Web3 hub."

It seems Hong Kong is positioning itself to be a prominent figure in the landscape of crypto and Web3.

As reported by Bloomberg on June 26th, 2023, US-based Circle Internet Financial Ltd. is keenly observing regulatory progress in Hong Kong after the territory’s newly announced crypto rules went into effect, according to Jeremy Allaire, the company’s co-founder and chief executive officer.

“Hong Kong clearly is looking to establish itself as a very significant center for digital assets markets and for stablecoins and we are paying very close attention to that,” Allaire said in an interview with Bloomberg Television on the sidelines of the World Economic Forum in Tianjin, China.

As the issuer of USD Coin, the world’s second-largest stablecoin, Asia is “a huge area of focus,” he added.

The statement comes after Circle obtained licensing as a major payments institution in Singapore, permitting it to offer digital payment token services as well as domestic and cross-border money transfer services in the city-state. The Singapore license will aid Circle in distributing its USD Coin “more fully in the region.”

Allaire’s enthusiasm for Hong Kong’s development and position on crypto was further conveyed in the following statements:

“What’s happening in Hong Kong may be a proxy for ultimately how these markets grow in Greater China,” Allaire said.

Allaire went on further to state, “We see enormous demand for digital dollars in emerging markets and Asia is really center of that.”

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