Gov’ts, Fintech centres aim to revive tech sector globally

HONG KONG, August 23rd – Ecosystems in East and West to promote startups and investments in AI, Web3, and crypto currencies in East and West have taken measures to add new life in a sector that has been facing headwinds from risk aversion and rising inflation rates, data compiled by The EDGE™Global AI & Web3 Investment Summit shows.

According to audit company KPMG, total funding and the number of fintech deals dropped from US$63.2 billion in H2 2022 across 2,885 deals to US$52.4 billion across 2,153 deals in H1 ’23. But there is light in the tunnel. Governments and fintech hubs globally have taken measures to “counterstrike” the slowdown triggered by rising inflation rates, regulatory and geopolitical headwinds.

The date June 1st, 2023, stands as an epochal juncture in Hong Kong‘s cryptocurrency history. On this very date, the Hong Kong Securities and Futures Commission unveiled the “Guidelines for Virtual Asset Trading Platform Operators” and the “Guideline on Anti Money Laundering,” heralding the advent of a transformative phase for virtual assets in the city. The Hong Kong government has exhibited profound dedication to the advancement of the Web3 industry. Be it officials of the Special Administrative Region or legislators, there is a resolute endeavour to establish a compliant regulatory framework that bridges the worlds of Web3 financial technology and traditional finance. The aspiration is to cultivate Hong Kong into a new epicentre for cryptocurrency and WEB3 development.

Earlier in July the U.K. government agreed with the country’s largest defined contribution pension schemes to allocate 5% of its assets to unlisted equities by 2030, which “could unlock up to £50 billion of investment in high-growth firms if all other defined contribution pension schemes follow suit,” CNBC has reported. Through this move, the U.K. also hope to stop the outflow of tech talent and young firms to EU countries following the Brexit of which Paris continues to benefit, Bloomberg has reported.

Saudi Arabia’s Crown Prince Mohammed bin Salman on Sunday launched on August 21st a $200 million fund for early investment in domestic and foreign high-tech companies, the Saudi Press Agency reported. This move reflects the kingdom’s commitment to fostering innovation and technology-driven growth. The fund, launched by Crown Prince Mohammed bin Salman, is expected to provide a significant boost to the startup ecosystem in Saudi Arabia. This initiative aligns with the Saudi Vision 2030, a strategic plan aimed at diversifying the economy and reducing dependency on oil. By supporting high-tech companies, Saudi Arabia aims to create a conducive environment for innovation, attract global tech talent, and establish itself as a regional tech hub.

In the sprawling metropolis of Shanghai, where East converges with West, innovation thrives within an ecosystem that marries heritage with high technology. This cosmopolitan hub has endowed China with the coveted Shanghai Stock Exchange’s STAR Market, a bastion for technology-focused enterprises to raise capital through IPOs. Moreover, the city’s pioneering strides in fostering blockchain and digital currency advancements continue to captivate global attention, positioning Shanghai at the vanguard of the Web3 and cryptocurrency revolution, not only within China but across international borders.

The Monetary Authority of Singapore (MAS) announced earlier it would commit S$150 million until 2026 under a so-called Financial Sector Technology and Innovation Scheme “to promote a vibrant technology ecosystem for the financial sector” local Singaporean media has reported.

As this epochal narrative unfolds, the global tech sector remains poised at the precipice of transformation. Fueled by governments, visionary enterprises, and tech incubators, the impetus to resuscitate the sector from the throes of adversity beckons a new era of innovation, collaboration, and limitless possibility. The symphony of East and West resonates, forging a harmonious cadence that will undoubtedly shape the trajectory of the digital world. At the first Edge Global AI and Web3 Investment Summit to take place from September 25 – 27 in Hong Kong at Asia Expo Center, speakers from across the globe will discuss the way forward in AI and Web3. ***