In recent years, Hong Kong has become a prominent global center for Web3 and metaverse startups, and it is now taking steps to educate its citizens about the advantages and potential dangers of these emerging technologies. The Hong Kong Police’s cybersecurity bureau has launched CyberDefender, a new platform designed to combat the increasing incidence of digital assets and Web3-related crimes in the city-state. The primary aim of the platform is to raise public awareness of the threats and opportunities associated with Web3 and the metaverse, as well as to provide new experiences and knowledge to the public.
Hong Kong has demonstrated a sustained commitment to investing in and attracting digital assets, Web3, blockchain, and metaverse firms in recent years, exemplified by the city-state’s prohibition of banks from refusing virtual asset service providers (VASPs) access to services, the issuance of new guidelines for VASP licensing, and its exploration of central bank digital currencies (CBDCs). Its latest initiative aims to provide retail traders with access to digital asset exchanges, while the launch of CyberDefender underscores the city-state’s continued support of the industry, offering virtual event venues for residents to learn about the metaverse.
During an online event to introduce the platform, the chief inspector of the cybersecurity bureau, Ip Cheuk-yu, highlighted the potential risks associated with the metaverse, warning that all forms of cybercrime could be replicated in this virtual environment, including investment scams, hacking, theft, and sexual offenses. He further cautioned that the decentralized nature of virtual assets in Web3 could heighten the risk of cybercriminals targeting endpoint devices, virtual asset wallets, and smart contracts.
The increasing adoption of digital assets in Hong Kong has led to a corresponding rise in related crimes, with police reporting digital currency scams totaling HK$1.7 billion (US$216.6 million) in 2022, double the losses from the previous year. In Q1 of this year, the Hong Kong Police received 663 complaints with a total loss of $73 million, representing a 75% increase from Q1 of the previous year. Criminals have taken advantage of Hong Kong residents’ limited understanding of virtual assets, enticing them into fraudulent investment schemes. The police believe that CyberDefender will play a crucial role in enhancing residents’ knowledge of digital assets and curbing BTC-related crimes.
According to experts, Hong Kong is poised to become the world’s leading center for Web3 and digital currencies, with the United States losing credibility due to regulatory inaction, and other cities such as London, Singapore, Paris, and Dubai failing to match Hong Kong’s impressive numbers.
