The Hong Kong Legislative Council is seeking international feedback to shape its Web3 and digital asset policies. Discover how this initiative aims to position Hong Kong as a global Web3 hub.
Hong Kong Seeks Global Feedback on Web3 Policy Development
The Hong Kong Legislative Council is taking significant steps toward shaping the future of Web3 and digital assets. In a proactive move, they are seeking feedback from industry players worldwide to develop comprehensive policies that will establish Hong Kong as a global leader in Web3 innovation.
A Call for Global Input
Johnny NG Kit-Chong, a member of the Hong Kong Legislative Council, announced that the council is actively seeking opinions from global industry experts. This initiative aims to gather diverse perspectives to propose policy recommendations and foster thematic discussions on the future direction of Web3 and digital assets.
In a recent post on X, the Legislative Council revealed the establishment of a Subcommittee on Web3 and Virtual Asset Development. This subcommittee's primary goal is to promote the development of Web3 technologies and digital assets in Hong Kong, ensuring the region remains at the forefront of technological innovation.
Key Areas of Focus
The subcommittee's initiative involves studying, summarizing, and submitting detailed proposals to the government. The focus is on several critical aspects of Web3 policy development, including:
Balancing Technical, Legal, and Regulatory Frameworks: The council aims to create a cohesive environment for Web3 development by establishing robust and clear regulations that balance technical advancements with legal and regulatory requirements.
Enhancing International Cooperation: To solidify Hong Kong’s position as a globally connected Web3 hub, the council seeks feedback on enhancing international cooperation. This includes exploring the convergence of artificial intelligence (AI) and Web3 technology to improve AI regulation.
Supporting Decentralized Autonomous Organizations (DAOs): The council is crafting policies to support the healthy development of DAOs, recognizing their potential in driving decentralized innovation and governance.
Attracting and Nurturing Talent: Developing strategies to attract and nurture talent in Web3 technology and financial innovation is another priority. The council aims to create a vibrant ecosystem that fosters innovation and growth.
Focus on Digital Assets
In addition to Web3 policy development, the Legislative Council is also focusing on the digital asset industry. They are identifying measures to facilitate its growth in Hong Kong by:
Enhancing Investor and Consumer Protection: Developing policies that boost market confidence and safeguard digital asset investors is crucial to ensuring the sustainable growth of the industry.
Assessing Stablecoins: The council plans to evaluate the potential benefits and risks of stablecoins, aiming to develop regulatory frameworks that balance financial stability with innovation.
Professional Custody Services: Recognizing the growing need for professional custody services for virtual assets, the council is developing corresponding regulatory measures to support this demand.
Hong Kong’s Commitment to Web3
In July 2023, the Hong Kong government formed a task force comprising 15 industry participants and 11 key government officials. This task force is dedicated to overseeing the development of Web3 and promoting its growth ethically.
However, the crypto exchange landscape in Hong Kong has seen some changes. Notably, the number of crypto exchanges seeking operational licenses is decreasing. On May 13, crypto exchanges IBTCEX and QuanXLab withdrew their applications, initially filed in February 2024. This indicates a cautious approach by some players in the industry amid evolving regulatory frameworks.
Hong Kong’s Legislative Council is taking decisive steps to shape the future of Web3 and digital assets through global collaboration and comprehensive policy development. By seeking feedback from industry experts worldwide, the council aims to establish Hong Kong as a leading hub for Web3 innovation.
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(AMAKA NWAOKOCHA, COINTELEGRAPH, 2024)