Hong Kong is seeking policy ideas to promote the growth of web3 and virtual assets, as announced by the Legislative Council (LegCo). In order to gather industry opinions and propose policy suggestions, the Council has established a Subcommittee on Web3 and Virtual Asset Development, according to LegCo member Johnny Ng.
Ng outlined several key areas for developing Hong Kong’s web3 landscape, emphasizing the need to balance and promote foundational technologies and regulatory measures. This involves creating an infrastructure that supports technological advancement while ensuring compliance and legal oversight.
Collaboration with national efforts is highlighted as crucial to position Hong Kong as a global web3 hub. The aim is to leverage the region’s strategic advantages and integrate them with broader national initiatives.
Ng also stressed the importance of integrating artificial intelligence with web3 technologies and improving AI regulatory systems. Additionally, he called for policy and regulatory recommendations for decentralized autonomous organizations (DAOs) and the cultivation of talent for the ecosystem.
To foster the virtual asset sector, Ng outlined strategies such as creating a supportive environment through favorable policies and infrastructure. Enhancing the protection of virtual asset investors and consumers is another critical focus, with robust regulatory frameworks needed to boost market confidence and ensure investor security.
The potential uses and risks associated with stablecoins in Hong Kong were also addressed, with Ng proposing regulatory systems that maintain financial stability while encouraging innovation.
Furthermore, the growing demand for professional custody services due to the increase in virtual assets was highlighted, suggesting that research into appropriate custody methods and regulatory measures is essential to support this growth.
Ng expressed his welcome to suggestions from the global web3 industry, stating that he will study them in detail and present them to the government through the Legislative Council platform.
