- Justin Sun backs Hong Kong’s Web3 development amid uncertainty.
- Hong Kong Finance Chief has allocated HK$50 million for Web3 growth and regulation.
- Crypto exchange Huobi, led by Justin Sun, will apply for a virtual asset service provider license in Hong Kong.
Justin Sun, the founder of the Tron blockchain, has expressed support for Hong Kong’s commitment to Web3 development despite recent market uncertainty. Sun praised the city’s long-term vision and embrace of innovation in a tweet, stating that Tron would continue to contribute to the economy.
Sun also shared a report suggesting that the regulators in Hong Kong are focused on investing in the Web 3 digital economy. Per the report, Hong Kong’s finance chief, Paul Chan Mo-po, has expressed optimism regarding the city’s Web3 digital economy investment despite the recent volatility in virtual asset markets and the collapse of some online trading platforms.
The government will hold a two-day digital economy summit featuring leaders from industry giants like Alibaba, Baidu, and Huawei, as well as key government officials. Chan believes that surviving market players will focus on technological innovation, applications, and value creation, leading to significant advancements in the industry. The government has allocated HK$50 million (US$6.4 million) to accelerate the development of Web3 through international conferences and youth workshops.
Hong Kong authorities also plan to introduce a licensing regime for virtual asset service providers in June to minimize risks in the innovation and development of Web3. Furthermore, the government is also considering regulating stablecoins.
Local experts agree that Hong Kong should not delay Web3 development and suggest building a regulatory framework to protect investors. They also point out that the city lags behind Singapore in terms of Web3 development, highlighting the need for clear policies to attract overseas investors and Web3 developers to Hong Kong.
Despite the uncertainty, Hong Kong’s securities regulator, the Securities and Futures Commission, has offered a lifeline to crypto companies by taking a transparent and flexible approach to discussing crypto regulation with market participants.
Previously, Sun revealed that Huobi, the crypto exchange he runs, will apply for a virtual asset service provider license in Hong Kong under the new requirements. If approved, Huobi Hong Kong will be launched. Sun believes that Beijing views Hong Kong as an experimental zone for cryptocurrency and that successful regulation in Hong Kong could potentially influence policy changes in mainland China.
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