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Hong Kong Seeks Policy Ideas to Boost Web3 and Virtual Asset Growth

Hong Kong Stablecoin Web3

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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Last updated:

June 24, 2024

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The Legislative Council (LegCo) of Hong Kong is calling for web3 and virtual asset policy ideas to foster industry growth.

According to a recent social media post by the LegCo member Johnny Ng, the Council has established a Subcommittee on Web3 and Virtual Asset Development to gather industry opinions and propose policy suggestions.

Hong Kong LegCo Subcommittee Calls for Suggestions

Ng detailed several key areas for developing Hong Kong’s web3 landscape. He emphasized the need to balance and promote the foundational technologies and regulatory measures. This involves creating an infrastructure that supports technological advancement while ensuring compliance and legal oversight.

The post highlighted the importance of cooperation with national efforts to position Hong Kong as a global web3 hub. This collaboration aims to leverage the region’s strategic advantages and integrate them with broader national initiatives.

Ng pointed out the necessity of integrating artificial intelligence with web3 technologies and improving AI regulatory systems. He also called for policy and regulatory recommendations for decentralized autonomous organizations (DAOs) and cultivating talent for the ecosystem.

Advancing Web3 and Virtual Asset Sectors

Ng also outlined several strategies to foster the virtual asset sector, including creating a supportive environment through favorable policies and infrastructure.

Enhancing the protection of virtual asset investors and consumers is another critical focus. Ng emphasized the need for robust regulatory frameworks to boost market confidence and ensure investor security.

He addressed the potential uses and risks associated with stablecoins in Hong Kong and proposed regulatory systems that maintain financial stability while encouraging innovation.

In addition, Ng highlighted the growing demand for professional custody services due to the increase in virtual assets, suggesting that research into appropriate custody methods and regulatory measures is essential to support this growth.

To promote the development of Web3 and virtual assets in Hong Kong, the HKSAR Legislative Council recently established a Subcommittee on Web3 and Virtual Asset Development. My office seeks to gather insights from the global Web3 industry, propose policy recommendations, and… pic.twitter.com/836ofG5XCK

— Johnny Ng 吴杰庄 (@Johnny_nkc) June 22, 2024

“I welcome suggestions from the global Web3 industry,” stated Ng. “I will study them in detail and summarize them to present to the government through the Legislative Council platform.”