Hong Kong’s Web3 industry has taken a significant leap forward in its pursuit of becoming a global crypto hub with the formation of two associations. The Hong Kong Licensed Virtual Assets Association (HKLVAA) and Web3 Harbour were unveiled at the Radical Finance Asia event on Monday.

The two unveiled association signals a united effort to foster the growth and development of the virtual asset industry and decentralized internet in HK. This move comes hot on the heels of China’s recent release of its Web3 whitepaper, further propelling Hong Kong’s ambitions to establish itself as a thriving center for digital assets.

Formation Of HKLVAA And Web3 Harbour

According to a statement, the newly formed associations, HKLVAA, and Web3 Harbour have opened their doors for membership applications and are gearing up to kickstart an array of community activities, research initiatives, and educational programs, set to commence in July.

Web3 Harbour’s founding board boasts industry leaders from Animoca Brands, DLA Piper, and WHub, with esteemed professional services firm PwC Hong Kong joining as a knowledge partner.

On the other hand, HKLVAA’s founding members include representatives from Securities and Futures Commission (SFC)-licensed firms that have obtained approval for engaging in virtual asset activities within Hong Kong, such as HashKey Digital Asset Group Limited, Venture Smart Asia Limited, Victory Securities Company Limited, Axion Global Asset Management Limited, and MaiCapital Limited.

With Hong Kong’s new cryptocurrency industry regulations set to take place from June 1, the city is laying the groundwork to solidify its position as a global digital asset hub.

While neighboring countries in Asia have tightened their regulations and imposed stricter measures, Hong Kong aims to provide a favorable environment for digital asset companies.

Driving Collaboration And Regulatory Clarity

Lawrence Chu, co-founder and Chairman of Venture Smart Financial Holdings, emphasized that HKLVAA represents the interests of licensed virtual asset entities in Hong Kong, acting as a unified voice for the industry.

While each association will cater to distinct membership bases and adopt unique approaches, knowledge sharing, and regulatory clarity take precedence in their joint efforts to accelerate the adoption and development of Web3 technologies in Hong Kong.

The founding boards of HKLVAA and Web3 Harbour envision a collaborative ecosystem that supports innovation, empowers industry players, and positions Hong Kong at the forefront of the Web3 revolution.

Notably, this move by Hong Kong’s Web3 industry comes just days after China released a Web3 whitepaper. The whitepaper focuses on key research areas within the web3 industry, including artificial intelligence (AI), XR interactive terminals, and content production tools that could be a boost for Hong Kong to accomplish its crypto hub ambitions.

It is worth noting that the commission’s main focus with the paper is to position Beijing as a prominent global innovation hub for the digital economy. With this goal in mind, the government has outlined its intention to allocate a minimum of 100 million yuan ($14 million) annually until 2025, aiming to provide substantial support for this vision.

Meanwhile, as the global Web3 industry has continued to improve regardless of regulatory scrutiny, the global crypto market has also thrived to stand its ground. Over the past 24 hours, the crypto market has dropped only 0.2% with a market value above $1.2 trillion.

Featured image from Shutterstock, Chart from TradingView