Hong Kong’s Legislative Council is actively seeking feedback on several key aspects of Web3 policy formulation, including balancing technological, legal, and regulatory frameworks.
Legislative Council member Wu Jiezhuang stated that they are currently soliciting opinions from the global industry on policy suggestions and specialized discussions regarding the future development direction of Web3 and the virtual asset industry.
According to a post on the X social platform, the Legislative Council has established a Web3 and virtual asset development subcommittee to promote the development of Web3 and virtual assets in Hong Kong.
The proposal will be thoroughly studied, summarized, and submitted to the government through the Legislative Council platform. This initiative aims to shape Hong Kong’s policy and regulatory landscape, positioning it as a global Web3 innovation hub.
The Legislative Council is actively seeking feedback on several key aspects of Web3 policy formulation, including balancing technological, legal, and regulatory frameworks, to create a cohesive environment supportive of Web3 technology and legal aspects, ensuring robust and clear regulation.
The Council is also interested in feedback on enhancing international cooperation to solidify Hong Kong’s position as a global hub for Web3 connectivity. This includes exploring the integration of artificial intelligence and Web3 technology to enhance artificial intelligence (AI) regulation.
It also involves developing policies to support the healthy growth of decentralized autonomous organizations (DAOs) and strategies to attract and cultivate talent in Web3 technology and financial innovation.
In addition to Web3 policies, the Legislative Council is also focused on the virtual asset industry and seeking measures to promote its development in Hong Kong. To achieve this goal, it is exploring ways to strengthen investor and consumer protection, boost market confidence, and protect virtual asset investors and consumers.
Furthermore, the Council plans to assess the potential benefits and risks of stablecoins and develop a regulatory framework that balances financial stability and innovation. It also addresses the growing demand for professional custody services for virtual assets and is formulating corresponding regulatory measures to support this demand.
Hong Kong’s perspective on the industry
In July 2023, the Hong Kong government established a task force composed of 15 industry participants and 11 key government officials to oversee the development of Web3, with a focus on promoting its development in an ethical manner.
However, the number of cryptocurrency exchanges in Hong Kong seeking operational licenses is steadily decreasing. On May 13, cryptocurrency exchanges IBTCEX and QuanXLab withdrew their applications initially submitted in February 2024.
