- An advisory group spots stigmatization as a challenge in promoting Web3 in Hong Kong.
- The advisory group comprises 12 leaders from the technology sector.
- The group recommends the timely creation of appropriate and effective regulatory systems.
Hong Kong’s “Technology Crime Police Advisory Group” identifies stigmatization as a key challenge in fostering Web3 growth in the region. The group asserts that inaccurate labeling of web3 concepts like blockchain and cryptocurrency creates mix-ups about their role in both legitimate and illicit activities.
Established by Hong Kong police in December 2022, the advisory group consists of 12 technology sector leaders. Their mission is to inform the police about the latest information technology developments, providing early insights into the rapidly changing tech landscape.
In March, the group convened its fifth meeting to discuss web3 development trends, focusing on the technology and its associated risks. The advisory group emphasized Hong Kong’s active involvement in promoting web3 and blockchain technology.
According to the group, Hong Kong’s web3 engagement extends beyond the virtual asset market, encompassing sectors like gaming, finance, art, culture, and historical preservation. However, the group expressed concern over the rise in virtual currency-related fraud.
Following the meeting, the advisory group recommended the development of appropriate and effective regulatory frameworks to proactively identify and mitigate risks in the evolving sector. The group noted that such measures would limit opportunities for criminals to exploit blockchain technology or use the virtual asset market for money laundering.
On the flip side, the advisory group believes that a well-regulated industry would allow legitimate businesses to thrive while maintaining compliance. It also anticipates that such an environment would restore public and corporate confidence in web3-related concepts, laying the groundwork for the sector’s growth in Hong Kong.
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