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Hong Kong remains upbeat on Web3 amid crypto market turmoil from US tariffs

Officials again touted the strength of the local Web3 industry, while Binance founder CZ avoided the event despite recent activity in the city

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Financial Secretary Paul Chan speaks at the Hong Kong Web3 Festival on April 7, touting the city’s commitment to the blockchain industry amid recent turmoil. Photo: Handout
Matt Haldane

The Hong Kong Web3 Festival opened on Monday against a backdrop of plunging global markets and a sharp downturn in cryptocurrency prices, while local officials and industry leaders expressed optimism about the industry’s future given the recent policy pivot in the US.

The event, hosted by crypto exchange operator HashKey Group and blockchain research organisation Wanxiang Blockchain Labs, comes as newly imposed US tariffs have roiled stock and crypto markets.

Bitcoin, the industry bellwether, plummeted again over the weekend, hovering around US$77,000 – down nearly 30 per cent from its January high of more than US$109,000, which was fuelled by exuberance over the incoming of crypto-friendly US President Donald Trump. The Hang Seng Index also suffered its steepest drop in more than 27 years on Monday amid broader market volatility.

“Hong Kong is pro-Web3,” Hong Kong Financial Secretary Paul Chan Mo-po said in his opening remarks on Monday, a day after the event’s official start date. The city’s approach is “not simply about regulations”, but also striking a balance without “stifling innovation”, he said.

“After all, innovation entails risks,” he added.

Securities and Futures Commission Executive Director Christina Choi Fung Yee urged businesses to “choose Hong Kong for your Web3 projects”.

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