In the bustling streets of Hong Kong, signs of a digital revolution are everywhere. Headlines in Sing Tao Daily boldly announce the establishment of the Hong Kong Web3.0 Association. Towering billboards and scrolling LED screens promote Bitcoin and other cryptocurrencies, while crypto-to-cash ATMs allow instant transactions across the city. From restaurants to office buildings, football stadiums to neighborhood newsstands, digital assets are becoming part of everyday life.
Amid this transformation, entrepreneurs are launching crypto schools, drawing curious middle-aged and senior residents eager to learn. Financial professionals are handling crypto-related services for the first time as their institutions begin collaborating with blockchain firms. After years of economic strain following the pandemic, Hong Kong is aggressively positioning itself as a global virtual asset hub, embracing Web3 innovation with unprecedented momentum.
The Government’s Bold Vision
What sets Hong Kong apart is not just market enthusiasm—but top-down government support. “Every department and official across all levels of government is actively promoting Hong Kong’s ambition to become a global center for virtual assets,” says Lily Z. King, COO of Cobo, a leading digital asset custodian.
This commitment became undeniable during Hong Kong Web3 Week in April 2023, when over 50,000 participants attended the Hong Kong Web3 Festival, alongside more than 150 satellite events. Global Web3 builders, investors, and developers flooded into the city, sensing opportunity.
Three key figures symbolize Hong Kong’s proactive stance:
- John Lee, Chief Executive of Hong Kong SAR, declared Web3.0 to be at a “golden starting point,” emphasizing its power to reshape traditional business models.
- Paul Chan, Financial Secretary, called it a “golden opportunity” despite market volatility, affirming that Web3 will rebound stronger after turbulence.
- Stephen Liang, Head of Fintech at InvestHK, has become a constant presence in the Web3 community—meeting founders daily and expanding his team from one to six specialists since the 2022 policy shift.
Regulators like the Securities and Futures Commission (SFC) and institutions such as Hong Kong Monetary Authority (HKMA) and Cyberport have also voiced strong support, creating a unified front.
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Even international observers are impressed. As one veteran journalist noted: “You can feel the sincerity in how officials answer questions—the openness with entrepreneurs is rare and powerful.”
This level of engagement sends a clear signal: Hong Kong is open for Web3 business.
A Magnet for Talent and Capital
Just a few years ago, many local crypto startups like DCBot, led by CIO Eric Wang, considered relocating to Singapore. But after Hong Kong’s landmark Policy Statement on Virtual Assets was released on October 31, 2022, everything changed.
The declaration formally announced Hong Kong’s ambition to become a global virtual asset center, catalyzing a wave of returnees and new entrants. “We saw friends moving here,” shares Su Zhu, co-founder and CEO of Cobo. “Hong Kong is starting to accumulate real blockchain talent.”
While 2020–2022 saw capital and professionals leaving the city, the tide has turned. As U.S. crypto regulations tighten and Singapore adopts a more cautious approach, Hong Kong stands out as an open, English-speaking financial gateway with deep regulatory expertise.
Developers once bound for Silicon Valley or Zurich are now looking east. “Some go to Europe, some to Singapore—but many are choosing Hong Kong,” Su Zhu observes.
The numbers speak for themselves:
- Over 150 Web3 events were held in one week in April 2023.
- Attendance at major conferences exceeded 50,000.
- Hotel prices near convention centers surged, reflecting high demand.
Entrepreneurs shuttle between summits, networking dinners, and investor meetings—some spending over HK$10,000 on taxis in a single day to maximize connections.
Why Hong Kong? Strategic Necessity Meets Innovation
So why is Hong Kong betting big on crypto?
“Hong Kong doesn’t have many options,” says Lily Z. King. Traditional sectors like shipping, real estate, and finance face stagnation. The city needs fresh energy—and digital assets offer a perfect fit.
With a mature financial infrastructure and strong rule of law, Hong Kong is uniquely positioned to bridge decentralized finance (DeFi) with institutional markets. The total market cap of cryptocurrencies—over **$1.1 trillion** (peaking above $2.6 trillion)—now rivals that of silver ($1.4 trillion) and is closing in on gold ($13 trillion). This isn’t speculative noise; it’s a new asset class demanding recognition.
Moreover, Web3 represents more than finance—it’s the next internet. NFTs have unlocked real-world applications in art, gaming, identity, and intellectual property, proving blockchain’s technological value beyond trading.
“The arrival of the Web3 era may drive economic growth,” said Japanese Prime Minister Fumio Kishida in May 2022.
Similarly, Chief Executive John Lee stated in April 2023: “We must dare to lead this wave of innovation.”
Countries across Asia are re-evaluating crypto not as a fringe trend but as core digital infrastructure. For Hong Kong—a city historically behind in Web1 and Web2—it’s a chance to leapfrog into Web3 leadership.
Challenges Ahead: From Hype to Sustainable Growth
Despite momentum, Hong Kong is not yet a Web3 paradise.
While financial crypto firms like OSL and Hashkey have obtained licenses, many remain in pre-launch phases. Adapting to compliance requirements often means entering a smaller, regulated market—challenging for globally scaled platforms used to open ecosystems.
Jeff, Partner at OKX Ventures, notes: “These companies must restructure operations to meet local rules. Will they achieve profitability under these constraints? That’s what the industry wants to know.”
Additionally, true Web3 adoption requires cultural change. Unlike mainland China’s cashless society, many in Hong Kong still rely on cash. Paper newspapers dominate street corners; taxis rarely accept digital payments. A society still adapting to Web2 may struggle to fully embrace decentralized apps and self-custody wallets.
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Yet these challenges don’t negate progress—they define the path forward.
Frequently Asked Questions (FAQ)
Q: Is cryptocurrency legal in Hong Kong?
A: Yes. Since the 2022 policy declaration, Hong Kong has established a clear regulatory framework for virtual assets. Licensed crypto exchanges can operate legally under SFC supervision.
Q: Can foreigners start a Web3 company in Hong Kong?
A: Absolutely. InvestHK actively supports overseas entrepreneurs with streamlined incorporation processes and visa assistance for tech talent.
Q: Are NFTs regulated in Hong Kong?
A: Currently, NFTs that don’t qualify as securities are unregulated. The government emphasizes innovation-friendly oversight—changes would come with advance notice and transition periods.
Q: How does Hong Kong compare to Singapore for crypto businesses?
A: Both are strong hubs, but Hong Kong offers proximity to mainland China’s market (with compliance), deeper capital pools, and stronger government backing for Web3 specifically.
Q: What types of crypto businesses are thriving in Hong Kong?
A: Custodial services, trading platforms, DeFi infrastructure, blockchain education startups, and NFT marketplaces are seeing rapid growth.
Q: Is now a good time to invest in Hong Kong’s Web3 ecosystem?
A: With sustained policy support expected for 2–3 years and increasing institutional interest, early movers have significant first-mover advantages.
The Road Ahead
Hong Kong’s journey toward becoming a crypto capital is still unfolding. It combines ambition with pragmatism—a rare blend in the volatile world of digital assets.
It’s not just about hosting festivals or issuing licenses. It’s about building lasting infrastructure: talent pipelines through education programs, regulatory clarity that fosters innovation without compromising security, and public awareness campaigns that demystify blockchain technology.
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With continued momentum, strategic investments, and global collaboration, Hong Kong may not only become a crypto-friendly city—but a true leader in shaping the next era of the internet.
The foundation is laid. The world is watching.