According to Yat Siu, co-founder of Animoca, a game software firm in Hong Kong, the rapid adoption of cryptocurrencies and Web3 in the region is indicative of significant developments happening in mainland China. Siu believes that the current crypto trend in Hong Kong is not limited to the city-state but has broader implications for China as a whole, despite China’s ban on cryptocurrencies. He pointed out that China released a Web3 white paper in May, which emphasized the importance of Web3 for the future of the Internet.
Siu highlighted that the announcement coincided with Hong Kong’s plans to allow retail crypto investments, indicating a connection between the two events. While China’s Web3 white paper did not explicitly mention cryptocurrencies, Siu emphasized the significance of mainland China’s allocation of resources toward advancing Web3 technology.
Siu mentioned that the news about Hong Kong’s crypto developments was widely covered in China, including on the national TV channel, China Central Television. This suggests that the message is not solely about Hong Kong but originates from higher authorities, with Hong Kong requiring approval from China for any major actions.
During his keynote speech, Siu also discussed the potential of Web3 as a tool to challenge the dominance of U.S. technology giants like Google, Apple, and Facebook, particularly in terms of security risks associated with dependence on these companies. Siu noted that countries such as Japan, Korea, and China are actively promoting Web3 as an opportunity to break away from U.S.-dominant technologies. He further explained that Web3 is significant for China due to its focus on de-dollarization and reducing dependency on the U.S. dollar, which is the global currency.
In a report by Todayq News on May 28, the Hong Kong government is making efforts to promote Web3 technology and cryptocurrencies, it does not mean that there will be any changes in the regulations imposed by mainland China or the Chinese government’s stance towards cryptocurrencies, said, Chenggang Zhou, the CEO of CPIC Investment Management.
It’s important to note that China officially banned virtually all crypto activities in September 2021, as announced by the People’s Bank of China. However, despite the ban, China has remained one of the world’s largest crypto-mining hubs. The news of Hong Kong’s crypto-friendly regulations has raised hopes that China may potentially lift its crypto ban.