Hong Kong’s plan to push for Web3 and blockchain technology adoption comes at a time when the crypto boom is getting fierce and competition for global market share is getting heated. But Hong Kong may have the edge when it comes to leading in Web3 in the next decade. At least that’s what the chair of the Silk Road Economic Development Research Centre Joseph Chan feels.
On December 5, they talked about the encouraging policies that seek to cultivate creativity as well as create a rule of law that pitches global investors, at the Belt and Road Forum. The focus – even though Hong Kong had many Web3 investors pulling out because of regulatory uncertainty, Chan said that he feels there will be progress.
“It joined the game late but has grown fast,” Joseph Stan.
And while a new mandatory licensing scheme introduced a couple of years back has made the process onerous and time-consuming for the industry, there have been several changes.
The licensing for cryptographic exchanges to serve retail investors has been simplified by the Securities and Futures Commission (SFC), while initiatives such as Project mBridge demonstrate the city’s capabilities in cross-border CBDC use cases.
According to @CoinBureau, such a plan is unheard of in the U.S. where the lack of regulatory policy frameworks has made the crypto industry hyper-volatile.
NEWS
— Coin Bureau (@coinbureau) December 7, 2024
Hong Kong officials highlighted the city’s stable crypto regulations and its role in promoting blockchain for cross-border payments.
Despite U.S. excitement over Trump’s crypto-friendly policies, Hong Kong aims to lead in Web3 long-term.
Experts see the U.S. ahead…
Intending to add long-term investments on offer, Hong Kong seeks to earn it through its promises of stability, experts have made forecasts for about 5–10 years of massive growth. Similarly, collaborations such as Flare Network’s and Red Date Tech’s decentralized KYC solution seem to support the city’s tech-centric outlook (@Puketiro).
FLR has partnered https://t.co/ih80XQCYKj
— Glenn Ashworth (@Puketiro) December 7, 2024
Even the bottom-post level crypto adoption can be found, such as in Hong Kong where TRON ($TRX) is fast becoming a staple for daily transactions (@PORTmetaXYZ).
TRON ( $TRX ) is the new Bitcoin of Hong Kong.
— 🇺🇸PORT🇺🇸 (@PORTmetaXYZ) December 7, 2024
It’s the only cryptocurrency that anyone in HK is talking about. @justinsuntron is a legend in HK. pic.twitter.com/iM1rTu9Qef
The Roadblocks Ahead
There are several ways in which Hong Kong can address the issues surrounding the advancement in the blockchain revolution. Scandals such as the JPEX one, which resulted in the loss of more than $178 million for around 2300 investors, leave a mark that can never be covered.
This has been in stark contrast to the comments made about having proactive and sensible policies in place. Victims such as @huan717 have taken to the internet, making it clear they are dissatisfied with the lack of responsibility and the constant narrative hinting that overseers did their job, contributing even more to the distrust towards the crypto environment of the city.
I call it bs…they still have yet to address the JPEX scam after more than a year…no one been held responsible and none of the victims got their compensation at all
— Huankchan (@huan717) December 7, 2024
On a broader and global level, the competition roadmap is still fierce. This has been well achieved by Singapore with tax benefits and public-private partnerships to establish them as a crypto center, while as more centers of computing develop in the United States, they have been able to ever continue drawing in the manpower and the money.
From a more local standpoint, Hong Kong also has its share of naysayers, like the crypto centrist @Skinny199, who questions why Hong Kong relies on centralized stablecoins to be used when this is the complete opposite of the idea of using blockchain.
Stablecoins? But most of them are centralized, they defy the core principles of Crypto!
— Skinny (@Skinny199) December 7, 2024
What about a Decentralized Stablecoin by @QuaiNetwork ?
Regulatory Clarity Better for the Longer Run?
The crypto journey of Hong Kong is a tale of a double-edged sword. To begin with, there is a very strong basis for blockchain creativity due to its regulatory clarity and of course the support from Beijing. However, fanned issues such as the JPEX scandal coupled with the perception of inadequate investor protection may sabotage its goals.
People such as @OhGodYes are worried that a geopolitical race is being created with Hong Kong racing to catch up with the likes of the US in the global crypto scene.
Please tempt Trump into a race against China. Bullish.
— OhGodYes (@ohgodyes) December 7, 2024
For Hong Kong to be successful, it would take more than just innovation and forward planning. It would take accountability and a consistent track record of providing capital market services focusing on the best interests of the clients. If the city can move on from its previous failings and garner trust, not only would it potentially regain its prominence as a financial center, but seek to set a bronze standard for how regulated blockchains are to be adopted.
Opportunity and Accountability – Can Hong Kong Pull Web3 Investors Back?
Becoming a global crypto hub is not just about getting the regulations right for Hong Kong, it’s about resilience and reinvention. A city that has suffered economically and reputation-wise can a newly emerging economy turn the tide of Web3’s future? Their ability to innovate while at the same time putting the trust and safety issues of the investors will be the key.
There is not only innovation of new technologies to be wrought but also the need to address issues that still linger, like the JPEX case, and to earn confidence in the solutions provided including a sturdy framework. To the success of Hong Kong, this could provide a standard for other regulated jurisdictional blockchain environments to aspire to. The following decade will show whether these goals escalate this role or if such plans remain unfulfilled, as many in the fierce battle for the crypto space have done before.
Last Updated on by Icy Tales Team
