Jupiter Zheng, a partner at Hashkey Capital, expressed optimism about Hong Kong’s readiness for the upcoming wave of mass crypto adoption. Zheng believes that the convergence of new Web3 projects and positive regulatory developments positions Hong Kong for significant growth over the next four to five years.
@mar2424 Jupiter Zheng, HashKey Capital’s Partner of Liquid Funds and Research, spoke at a panel discussion at CVCF last week with the theme “Navigating the Web3 Investment Landscape: Emerging Trends to Watch in 2023–24”. pic.twitter.com/P5Yg1StzfI
— HashKey Capital (@HashKey_Capital) November 6, 2023
Robust Ecosystem and Technological Advancements
Zheng highlighted the influx of crypto talent into Hong Kong and the development of new Web3 projects. Despite crypto prices not fully reflecting the sector’s sophistication, he emphasized the remarkable technological improvements witnessed during the past 18 months. According to Zheng, the region is well-prepared for the next wave of larger mass adoption in the crypto world.
Crypto as a Driver for Hong Kong’s Economy
Acknowledging recent economic challenges, Zheng sees the crypto sector as a potential new driver for Hong Kong’s economy. He believes that crypto and Web3 technologies can play a crucial role in revitalizing the GDP, offering a fresh impetus amid challenging times.
Hong Kong’s burgeoning virtual asset policy is paving the way for the future of #Web3 👀
Our Partner of Liquid Funds and Research, @mar2424 shares his insights into the developments and opportunities that are reshaping the industry and the rest of the world at large.
— HashKey Capital (@HashKey_Capital) November 7, 2023
Hashkey, having received a specific license on August 3, became the first crypto exchange in Hong Kong authorized to offer crypto assets to retail investors. Zheng expects a growing demand for crypto products from residents as the government outlines its regulatory framework, providing safety measures and legal protections for retail investors.
Outlook on Web3 Development in Asia
Zheng predicts that the development of Web3 in Asia, particularly in Hong Kong, will follow a pattern similar to the GameFi sector in Southeast Asia in 2021. While growth may be less speculative, there will be a focus on sober and well-regulated protocols and blockchain infrastructure.
Hong Kong’s Resolve Post-Exchange Scandal
Despite a crypto exchange scandal in September involving JPEX, Hong Kong’s Secretary for Financial Services and the Treasury, Christian Hui, assured stakeholders that the incident has not dampened the government’s commitment to positioning Hong Kong as Asia’s crypto hub. The government pledged to tighten crypto regulations, emphasizing its determination to foster a secure and thriving crypto ecosystem.