Hong Kong’s Web3 industry faces 100,000 person shortfall

Hong Kong Legislative Council Member and Co-founder of G-Rocket, an incubator firm, Wu Jiezhuang, said the region faces a Web3 talent shortage.

In an interview with Chinese-language crypto publication Chain Catcher, Jiezhuang covered several points, including developments at G-Rocket, the impact of the Virtual Assets Service Provider (VASP) licensing system in Hong Kong, and the government’s support for Web3.

Commenting on the Hong Kong government’s previously tough stance against the industry, Jiezhuang said local policies were always relatively open, even before June 1, when the Securities and Futures Commission (SFC) opened up applications for crypto trading licenses.

To dismiss fears over applying for a Web3 license and regretting the decision later, he clarified that the two activities of providing crypto trading and crypto asset management do require licensing. But all other Web3-related services do not.

“In addition to these two areas, Hong Kong has not said that other Web3 services should be clearly supervised.“

Furthermore, Jiezhuang said Web3 innovators should set up in Hong Kong because the “government is relatively stable and takes a long-term view.” In addition, entrepreneurs can obtain help with funding, marketing, and intellectual property protection.

The Web3 future

When asked about the impact of VASP licensing, the G-Rocket Co-founder said exchanges would be “justifiably” under Know Your Customer (KYC) and Anti Money Laundering (AML) obligations. In turn, this will open up seamless integration with the banking system.

As such, all parties will come under the framework of law and regulation, ensuring legality and financial protection. Jiezhuang added that he believes the entire industry wants this, particularly in Hong Kong, which is known as an international financial center with a reputation for strong investor protection.

On the matter of unfriendly banks and reports of crypto firms having difficulties opening bank accounts, Jiezhuang commented that he sat in on a meeting between The Hong Kong Monetary Authority, The Securities Regulatory Commission, and over 20 local banks, which concluded that all businesses, crypto-affiliated or not, should be treated equally.

Jiezhuang said the bottleneck would not come from banks. Instead, it will be the result of talent shortfalls. He explained that people with “international vision, familiarity with laws and regulations, and understanding of Web3″ are rare.

If projections of incubating 1,000 Web3 companies by 2026 are met, there will be an estimated deficit of between 50,000 and 100,000 people.