Hong Kong is investing $6.4 million to develop its Web3 ecosystem, according to the city’s 2023–2024 budget published on Wednesday.

The budget will focus on organizing international seminars, cross-sectoral business cooperation, and workshops for young people.

The financial secretary, Paul Chan, also announced the creation of a task force dedicated to virtual asset development, composed of members from policy bureaux, regulatory bodies, and industry, with a focus on driving growth in the virtual asset industry.

Hong Kong is pursuing its ambition to become a hub for the virtual asset industry, with the Securities and Futures Commission publishing its proposed rules for virtual asset platforms on Monday.

In addition, the government has allocated $3.8 billion (HK$30 billion) for a co-investment fund to attract non-local businesses to the city, and the chief executive, John Lee, announced the establishment of the Hong Kong Investment Corporation Limited in his policy address last October.

The latest funding announcement is expected to attract more businesses to Hong Kong, encourage cross-sectoral cooperation, and inspire young people to explore opportunities in Web3 technology.

This investment in the Web3 ecosystem, coupled with the city’s proactive approach to creating a supportive regulatory environment, will help Hong Kong to build its reputation as a hub for the virtual asset industry.