In recent years, the virtual asset industry has been turbulent, with various innovative technologies and applications emerging one after another. Regulatory authorities in various jurisdictions around the world are also following closely, hoping to standardize the development of the industry and find new development engines for the local economy. The Hong Kong Securities and Futures Commission, the Hong Kong Financial Services and the Treasury Bureau (referred to as the "Treasury Bureau"), the Hong Kong Monetary Authority and other institutions have issued a number of statements, circulars, position papers, legislative consultation and other documents from different regulatory perspectives, and gradually Construct Hong Kong’s regulatory framework for virtual assets.
The Treasury Bureau officially released the "Policy Declaration on the Development of Virtual Assets in Hong Kong" ("Policy Declaration") on October 31, 2022, which attracted widespread attention. The policy declaration demonstrates the Hong Kong government's open, inclusive and innovative attitude towards public participation in virtual asset transactions, property rights protection of tokenized assets, and the development of stable coins.
The Hong Kong government has also personally participated in three experimental projects: NFT issuance, green debt tokenization, and digital Hong Kong dollars to test the technical benefits brought by virtual assets and try to further apply relevant technologies to the financial market.
At the opening ceremony of the Hong Kong Web3 Carnival held in April this year, Hong Kong Financial Secretary Paul Chan Mo-po said that now is a golden opportunity for the development of Web3, and it is also the most thrilling moment. Web3 is in its infancy, and current common applications include cryptocurrency, decentralized exchanges, and blockchain games, but there will be more new applications and opportunities in the future.
Looking back at history, every Internet boom has experienced shocks at the beginning. From the dot-com boom in 2000 to the virtual currency boom in recent years, to the recent collapse of virtual asset exchanges, some banks whose main customers are start-ups have been implicated, which has also brought shocks to the market.
"But after the thrilling events, the remaining market participants will become stronger and investors will become relatively calmer. Market forces will drive enterprises, technologies and applications to generate new forces and new models, allowing strong companies to survive the market take-off stage. On the other hand, governments and regulators will generally learn from experience and formulate appropriate strategies to plug loopholes and manage risks after the shock, so that the market can develop steadily and prudently." Chan Mo-po said, "From a historical perspective, Web3 development will grow rapidly again after experiencing a shock phase. Recent events tell us that the problem with virtual currencies, virtual assets and trading platforms is not the lack of innovation, but whether they have effectively controlled risks under a proper regulatory framework."
Chan Ka-chi, Assistant Chief Executive (Currency Management) of the Hong Kong Monetary Authority, also said that in terms of supervising stablecoins, taking into account the market’s expectations for stablecoins as a medium of exchange, the importance of requiring stablecoins to establish a credible and robust “value stabilization” mechanism, and stability The Hong Kong Monetary Authority continues to follow up on relevant work and hopes to establish appropriate regulatory arrangements for stablecoins. We will also maintain communication with relevant government departments, other regulatory agencies, international regulatory organizations and the industry to actively promote the sustainable and responsible development of the industry.
In this year's Budget, the Hong Kong government proposed three major directions from the perspective of "high-quality development," including digital economy, the development of Web3, and the positioning of an international green technology and financial center. #Web3 #BTC #ETH #香港加密政策
