The first web3 festival in Hong Kong was a success, drawing in visitors from various countries. The city's new regulations on digital assets now allow retail investors to trade certain digital assets on licensed exchanges, and it is also making moves to legalize stablecoins.

These developments are attracting Chinese founders in self-exile to consider setting up in Hong Kong. The city's focus on the crypto industry is seen as a way to revitalize its economy, given its strong foundation in the finance sector and the need for new talent to overcome challenges in traditional industries.