Web3 Harbour collaborated with PwC Hong Kong to set up the “Hong Kong Web3 Blueprint.” This strategic roadmap serves as a blueprint to make the region a leader in decentralized finance. The report identifies five key enablers for Web3 development and highlights the need for public-private partnership to advance innovation. Industry stakeholders and Web3 Harbour members contributed to the blueprint, which deliberately avoids focusing on mainstream cryptocurrencies like Bitcoin, instead highlighting decentralized technology as foundational market infrastructure.

The newly released comprehensive report makes clear what’s needed in order for Web3 to flourish, but those components are absolutely critical. These components are talent, market infrastructure, industry standards, regulation, and financial investment. Web3 Harbour and PwC Hong Kong are poised to use this blueprint to accelerate blockchain infrastructure development. Specifically, their aim is to make Hong Kong a major global hub for decentralized finance.

The report’s authors—Digital Asset’s Gary Liu and BCG’s Peter Brewin—were adamant that we need to stop treating decentralized technology as something optional that can provide additional market infrastructure. They call for policymakers and regulators to look past the view of crypto as just an investment class. Liu was humbled—and amazed—to see just how critical native cryptocurrencies are for protecting public blockchains. That said, the blueprint does a savvy job of focusing on the broader use cases for Web3 technology.

Hong Kong's commitment to fostering a conducive regulatory environment is evident in its recent stablecoin ordinance, slated for implementation in August. This progressive regulatory approach is what makes it unique amongst other jurisdictions. Peter Brewin countered that in Hong Kong they have a more open and inclusive attitude towards stablecoins. It accepts many different currencies—which the United States does not.

In order to make progress on the goals described in the blueprint, five targeted working groups will be formed beginning in August. Among other things, these groups will be organizing efforts around stablecoins and fund management. They’ll address virtual asset trading platforms (VATPs), legal and compliance frameworks, custody and over-the-counter (OTC) trading mechanisms.

The report advocates for other regulatory innovations like regulatory passporting. Qualified overseas service providers are now able to operate in Hong Kong with simplified compliance processes. This update will encourage more international attendance and enhance collaboration.

Gary Liu noted that this is especially critical for private entities to keep a long-term view. This is fundamental to the successful adoption of decentralized technologies within Hong Kong’s financial infrastructure. The public and private sectors need to collaborate. This type of collaboration is key for Hong Kong to realize its ambitions to become a top Web3 hub.