Hong Kong lawmaker proposes Web3 financing platform for Greater Bay Area

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A Hong Kong lawmaker has proposed a financing platform for blockchain and digital asset companies in the Greater Bay Area to promote innovation and protect China’s position in global tech leadership.

Johnny Ng, a pro-blockchain member of Hong Kong’s Legislative Council, made the proposal as China’s two central political bodies converged in Beijing for the Two Sessions extravaganza. While this year’s focus was on economic recovery, Taiwan, and foreign relations, the lawmakers also discussed the future of China’s tech industry, and Ng squeezed Web3 into the agenda.

The lawmaker’s proposal acknowledges that Hong Kong has become a global leader in Web3, attracting some of the largest and most innovative projects. China should leverage this infrastructure to boost its grip on the Web3 sector and expand it to the Greater Bay Area.

The Greater Bay Area is a supercity in South China with a population of 72 million. It comprises nine cities, including Shenzhen, Guangzhou, and Zhaoqing, and two administrative regions: Hong Kong and Macao.

Ng called on the relevant ministries and state departments to formulate policies that support this initiative. He also called for a roadmap for the region to achieve its Web3 ambitions.

The legislator acknowledged that the Greater Bay Area is diverse, and some regions are more progressive with digital assets and blockchain than others. As such, each project should be judged individually and presented with the support it needs.

The region must also leverage trusted data exchange tools to tap into global financing platforms and integrate them into its SME platforms, making it a “small and medium-sized enterprise international cooperation zone.”

The proposal comes against a backdrop of increasingly contrasting approaches to digital assets between Hong Kong and China. While the latter has banned digital assets for years, the city-state has recently opened its doors to virtual asset service providers (VASPs). A
‘crypto’ scandal that cost residents over $200 million in 2023 hasn’t deterred the city’s ambition to be a digital asset haven.

BitForex, another exchange based in the city, recently went offline after $57 million was mysteriously withdrawn from its wallets. The Securities and Futures Commission (SFC) issued a warning against the exchange, stating that it hadn’t licensed it to offer VASP services in the city.

Watch: What can organizations do to get on the Web3 & digital identity bus?