Friday, June 28, 2024 – Hong Kong’s Legislative Council (LegCo) is seeking public feedback on policy proposals to foster the growth of Web3 and virtual asset sectors within the territory. 1
LegCo member Johnny Ng announced the initiative, highlighting the creation of a Subcommittee on Web3 and Virtual Asset Development. This subcommittee aims to gather industry opinions and suggestions to shape future policy frameworks.
Ng outlined several key areas for potential policy development. These include establishing an environment that encourages Web3 development while ensuring compliance and consumer protection, and balancing technological innovation with regulatory clarity.
Ng emphasized the importance of aligning Hong Kong’s Web3 strategy with broader national initiatives in China, promoting collaboration on digital innovation efforts.
Exploring the integration of artificial intelligence (AI) with Web3 technologies and establishing regulatory frameworks for AI in this context is a priority.
Ng also highlighted the need for developing regulations that support the responsible growth of decentralized autonomous organizations (DAOs) within Hong Kong.
In addition, encouraging talent development and fostering innovation to support the Web3 ecosystem’s growth were emphasized as critical objectives.
The strategy regarding virtual assets will encompass several key initiatives. These include creating a conducive environment for virtual asset businesses by implementing policies and infrastructure that foster sectoral growth.
There will be efforts to enhance investor protection through the reinforcement of regulatory frameworks, thereby safeguarding virtual asset investments and bolstering market confidence.
Addressing stablecoin risks and opportunities will also be a priority, involving a thorough examination of their potential uses and associated risks, along the development of regulations that encourage innovation while ensuring financial stability.
The plan involves facilitating the emergence of professional custody solutions to provide secure storage services for virtual assets.
This public consultation reflects Hong Kong’s ambition to establish itself as a hub for Web3 innovation and virtual asset development.
- Virtual Asset Policies: https://cryptonews.com/news/hong-kong-seeks-ideas-to-boost-web3-and-virtual-asset-growth.htm[↩]
