Johnny NG Kit-Chong, a member of the Legislative Council of Hong Kong, has recently announced that they are currently seeking input from industry experts around the world to propose policy recommendations and engage in thematic discussions regarding the future of Web3 and digital assets.
The Legislative Council has established a Subcommittee on Web3 and Virtual Asset Development, with the goal of advancing the development of Web3 and digital assets in Hong Kong. The proposal will be thoroughly examined, summarized, and then presented to the government through the Legislative Council. This initiative aims to shape Hong Kong’s policy and regulatory landscape, positioning it as a global center for Web3 innovation.
The council is seeking feedback on various crucial aspects of Web3 policy development, including the need to create a cohesive environment for the development of Web3 through well-defined technical, legal, and regulatory frameworks. Additionally, they are interested in enhancing international cooperation to solidify Hong Kong’s position as a globally connected Web3 hub. This involves exploring the convergence of artificial intelligence and Web3 technology to improve AI regulation.
Moreover, the council is also focused on crafting policies to support the healthy development of decentralized autonomous organizations (DAOs) and developing strategies to attract and nurture talent in Web3 technology and financial innovation.
In addition to the Web3 policy, the Legislative Council is also concentrating on the digital asset industry and is looking at measures to facilitate its growth in Hong Kong. This includes enhancing investor and consumer protection, boosting market confidence, and safeguarding digital asset investors. They also plan to assess the potential benefits and risks of stablecoins and develop regulatory frameworks that balance financial stability with innovation. The council is also addressing the growing need for professional custody services for virtual assets and developing corresponding regulatory measures to support this demand.
The government of Hong Kong formed a task force in July 2023, comprising 15 industry participants and 11 key government officials, to oversee the development of Web3 and focus on ethically promoting its growth.
However, despite these efforts, the number of crypto exchanges seeking operational licenses in Hong Kong has been steadily decreasing. On May 13, crypto exchanges IBTCEX and QuanXLab withdrew their applications, which were initially filed in February 2024.