The Hong Kong Legislative Council seeks feedback on several critical aspects of Web3 policy development, such as the balance of technical, legal, and regulatory frameworks
Johnny NG Kit-Chong, a Hong Kong Legislative Council member, has stated that the global industry is currently soliciting opinions to propose policy recommendations and thematic discussions regarding the future trajectory of Web3 and virtual assets industry development.
The Legislative Council has established a subcommittee on Web3 and virtual asset development to encourage the development of Web3 and virtual assets in Hong Kong, as indicated by a post on the X social platform.
What is Hong Kong seeking?
The proposal will be thoroughly examined, summarized, and submitted to the government via the Legislative Council platform. This initiative aims to establish Hong Kong as a global epicenter for Web3 innovation by influencing the policy and regulatory landscape.
The Hong Kong Legislative Council is currently soliciting feedback on several critical aspects of Web3 policy development, such as establishing a cohesive environment that supports the technical and legal aspects of Web3 and ensures robust and clear regulations. This includes the balancing of technical, legal, and regulatory frameworks.
The Council is also interested in feedback regarding enhancing international cooperation to fortify Hong Kong’s status as a globally connected Web3 node. This encompasses the investigation of the convergence of Web3 technology and artificial intelligence (AI) to enhance AI regulation.
It also entails the creation of policies to facilitate the healthy development of Decentralized Autonomous Organizations (DAOs) and the development of strategies to attract and cultivate talent in financial innovation and Web3 technology.
The Legislative Council is also concentrating on the virtual asset industry and is seeking to identify measures to facilitate its development in Hong Kong, in addition to the Web3 policy. It investigates methods to improve investor and consumer protection, increase market confidence, and defend virtual asset investors and consumers to accomplish this.
Furthermore, the Council intends to evaluate stablecoins’ potential risks and benefits and establish regulatory frameworks that balance financial stability and innovation. In addition, it addresses the increasing demand for professional custody services for virtual assets and establishes the necessary regulatory measures to accommodate this demand.
Hong Kong’s perspective on the industry
In July 2023, the government of Hong Kong established a task force that included 15 industry participants and 11 key government officials. The task force was responsible for overseeing the development of Web3 and concentrating on the ethical promotion of its growth.
Nevertheless, the quantity of crypto exchanges pursuing operational licenses in Hong Kong is continuously declining. Crypto exchanges IBTCEX and QuanXLab withdrew their applications, initially submitted in February 2024, on May 13.