Johnny NG Kit-Chong, a member of the Hong Kong Legislative Council, has announced that input is being gathered from the global industry to propose policy recommendations and engage in thematic discussions regarding the future of Web3 and virtual asset industry development.
As shared on the X social platform, a subcommittee on Web3 and virtual asset development has been established by the Legislative Council to advance the growth of Web3 and virtual assets in Hong Kong.
The objective of this proposal is to thoroughly study, summarize, and present it to the government through the Legislative Council platform. This endeavor is aimed at shaping Hong Kong’s policy and regulatory framework, positioning the city as a leading global center for Web3 innovation.
The Hong Kong Legislative Council is actively seeking input on various crucial aspects of Web3 policy development. This includes harmonizing technical, legal, and regulatory frameworks to create a supportive environment for the technical and legal aspects of Web3, ensuring strong and transparent regulations.
Furthermore, the Council is keen on feedback regarding enhancing international collaboration to strengthen Hong Kong’s status as a globally interconnected Web3 hub. This entails exploring the intersection of artificial intelligence and Web3 technology to enhance AI regulation.
In addition to Web3 policies, the Legislative Council is focusing on the virtual asset industry and is exploring measures to facilitate its growth in Hong Kong. This involves enhancing investor and consumer protection, boosting market confidence, and safeguarding the interests of virtual asset investors and consumers.
The Council also plans to evaluate the potential benefits and risks associated with stablecoins and develop regulatory frameworks that strike a balance between financial stability and innovation. It also addresses the increasing demand for professional custody services for virtual assets and is working on corresponding regulatory measures to support this demand.
In July 2023, the Hong Kong government assembled a task force consisting of 15 industry participants and 11 key government officials to oversee the development of Web3 and focus on ethically promoting its growth.
Despite this initiative, the number of crypto exchanges seeking operational licenses in Hong Kong is on the decline. Recently, crypto exchanges IBTCEX and QuanXLab withdrew their applications, which were initially submitted in February 2024.