In an exclusive interview with Cointelegraph, Jupiter Zheng, a partner at Hashkey Capital, expressed Hong Kong’s robust readiness for the impending wave of mass crypto adoption. According to Zheng, the region is attracting a wave of crypto talent, positioning itself as a significant digital asset hub poised for substantial growth over the next four to five years.

Amid the influx of new Web3 projects and favorable regulatory developments, Zheng highlighted the real GDP impact of diverse teams and founders converging in Hong Kong. Despite the current state of crypto prices, Zheng emphasized the striking technological advancements witnessed in the sector over the past 18 months, setting the stage for the next phase of mass adoption in the crypto world.

“The actual technological improvement we’ve seen throughout the bear market has been quite astonishing. So I think from the technology side, we are very ready for the next wave of larger mass adoption in the crypto world,” remarked Zheng.

His optimism for Hong Kong stems from the belief that the region’s economy is in need of a new driving force, and he sees the crypto sector as the catalyst for change. “The GDP in Hong Kong in recent years hasn’t been looking so good—largely due to Covid. So it needs a new driver. So it’s my theory that crypto and Web3 are the new drivers here,” Zheng explained.

Hashkey made history on August 3rd by becoming the first crypto exchange in Hong Kong to receive a specific license, allowing them to offer crypto assets to retail investors. Although not directly involved in the exchange arm, Zheng anticipates a growing demand for crypto products among local residents as the government outlines its regulatory scheme, addressing investor concerns and providing safety through insurance and legal protections.

“The recent policy changes give retail investors safety because now you’ve got insurance and legal protections,” he said. “You don’t have to use online wallets to do self-custody. All you need to do is open an account on an exchange, and then you can use your Hong Kong dollars to buy Bitcoins and other crypto. It’s quite easy.”

While acknowledging the current bear market, Zheng anticipates a shift in outlook when the bull market returns, with retail investors returning, especially when they can securely buy from licensed exchanges.

Looking ahead, Zheng predicts that Web3 in Asia, particularly in Hong Kong, will follow a development pattern similar to the GameFi sector in Southeast Asia in 2021. Drawing a parallel with the brief dominance of Axie Infinity as one of the most-played games globally, Zheng notes that while projects developed in the U.S. and Europe may not witness massive adoption in their home regions, they could find a receptive market in Asia.

“I think in the future Asia will still follow the same pattern. Protocols and infrastructure projects that are developed in the United States or Europe or Australia may not witness massive adoption where they’re developed—but if they want to find a market, they can go to Asia,” Zheng explained.

As Hong Kong positions itself as a thriving crypto hub, the stage is set for a transformative period in the region’s economic landscape. With the convergence of technological advancements, regulatory support, and a growing pool of crypto talent, Hong Kong seems poised to ride the next wave of the crypto bull run, ushering in a new era of prosperity and innovation.