Hong Kong has taken another step forward in its support for the crypto sector by establishing a new subcommittee focused on Web3 and virtual asset development. Johnny Ng, a member of the Hong Kong Legislative Council, announced the formation of the subcommittee and stated that his office is actively gathering policy feedback from the global Web3 industry. The goal is to gain insights, make policy recommendations, and discuss the future direction of the crypto industry in Hong Kong.
The subcommittee, chaired by Ng, will focus on several key areas including enhancing protection for crypto investors, ensuring financial stability while promoting stablecoin innovation, and exploring regulatory measures for professional crypto custody services. Ng’s office is also seeking policy recommendations for the integrated development of artificial intelligence and Web3, as well as regulatory proposals for decentralized autonomous organizations (DAOs).
This move is significant as it demonstrates Hong Kong’s progressive approach to cryptocurrencies, in contrast to the stricter regulations and crackdowns on crypto trading and mining seen in mainland China. Hong Kong has been welcoming crypto firms since last year and introduced a licensing regime for crypto trading platforms in June 2023. This regime allows licensed exchanges to offer retail trading services, signaling a more open stance towards digital assets.
In April, Hong Kong introduced spot Bitcoin and Ethereum exchange-traded funds (ETFs), further cementing its support for the crypto industry. Discussions are ongoing regarding the potential inclusion of staking in spot ether ETFs, which could provide a competitive advantage. The Chairman of Animoca Brands, Yat Siu, expressed optimism that this inclusion could happen within the year.
The Chairman of the Hong Kong Securities and Futures Commission, Julia Leung, also expressed her support for Bitcoin, recognizing its enduring power as an alternative asset. This support highlights Hong Kong’s commitment to nurturing a robust and innovative crypto industry.
It’s important to note that the information provided in this article is not investment advice.
