HONG KONG -- A total of 50 million Hong Kong dollars (about $6.37 million) will be allocated to expedite the third generation Internet (Web3) ecosystem development in Hong Kong, Financial Secretary of China's Hong Kong Special Administrative Region (HKSAR) government Paul Chan said on Wednesday.

Web3, currently in its start-up period, has huge potential and Hong Kong must keep up with the times and seize this golden opportunity to spearhead innovation development, Chan said when delivering the annual budget at the HKSAR's Legislative Council.

Cyberport, one of Hong Kong's key technology infrastructure, established the Web3 Hub@Cyberport early this year, Chan said, adding the 50 million Hong Kong dollars will be used to organize major international seminars to enable the industry and enterprises to better grasp frontier development and to promote cross-sectoral business co-operation, among other things.

Chan said that virtual assets (VA) are an integral part of a vibrant Web3 ecosystem. The policy statement on VA issued in October last year has set out the HKSAR government's policy stance and approach towards the relevant sector. The market has responded proactively.

Chan said, for the next step, he will establish and lead a task force on VA development, with members from relevant policy bureaux, financial regulators and market participants, to provide recommendations on the sustainable and responsible development of the sector.