Financial Secretary Paul Chan reaffirmed Hong Kong’s ambition to become a global hub for blockchain and digital assets during the Hong Kong Web3 Festival.
He underscored the need for a balanced regulatory approach to bridge traditional finance with the emerging digital economy.
Speaking to a packed audience of industry leaders, developers, and policymakers, Chan emphasized Hong Kong’s commitment to Web3, highlighting the progress made since the 2022 policy statement on virtual assets. He outlined a clear regulatory philosophy of equal treatment for similar activities: “Hong Kong is pro-Web3.” Key achievements include issuing ten licenses for virtual asset trading platforms and establishing the largest market for spot virtual asset exchange-traded funds (ETFs) in Asia-Pacific, showcasing the city’s role in bridging traditional finance with emerging financial infrastructure.
Hong Kong is advancing stablecoin regulation with upcoming legislation and licensing frameworks for OTC trading and custodian services. A second policy statement will be released later this year, focusing on strategies to leverage Web3 technologies for enhancing the real economy, improving digital integration, and modernizing traditional financial services.
However, Chan clarified that Hong Kong’s Web3 strategy is not solely built on regulation.
“We want to strike the right balance,”
he said.
“Innovation comes with risk, but our job is to create an environment where it can thrive responsibly.”
Chan noted that the Hong Kong Monetary Authority’s Project Ensemble, a regulatory sandbox for testing tokenized real-world asset applications, is evidence of the government’s supportive stance towards innovation. He emphasized that these collaborative efforts demonstrate a model in which regulators and innovators jointly influence the future of finance.
Echoing his remarks, the Hong Kong Securities and Futures Commission (SFC) has introduced a comprehensive roadmap to strengthen the city’s position as a leading destination for cryptocurrency and virtual asset development. Chan concluded that this strategic alignment between policy and regulation will ensure that Hong Kong remains at the forefront of the Web3 revolution.
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