- Hong Kong’s licensing regime for virtual asset service providers is set to go live in June.
- The Hong Kong Monetary Authority is working on a regulatory regime for stablecoins.
- The island city is positioning itself to become the leading hub for crypto and web3 in Asia.
The government of Hong Kong is actively supporting the development of its crypto industry by interacting with companies operating in the virtual asset industry, along with working towards providing more regulatory clarity. The efforts are in line with the island city to establish itself as the leading hub for web3 and virtual assets in Asia.
Christopher Hui, the Secretary for Financial Services and the Treasury, recently spoke at the Aspen Digital Web 3 Investment Summit. Secretary Hui revealed that Hong Kong’s government has a “high-level commitment” to developing its crypto industry and providing a comprehensive support system to enterprises and start-ups in this space.
“Web3 is not just a buzzword or a hype. It is a paradigm shift that will transform the way we interact with information, value, and trust on the Internet, or in the future metaverse. It has the potential to enable more decentralized, efficient, and inclusive platforms and services that empower users and creators,” the Secretary stated.
Speaking on the recent policy statement issued by the government regarding the development and vision for virtual assets in Hong Kong, Secretary Hui claimed that it was well received by the crypto industry. According to him, more than 80 virtual asset-related companies have expressed their interest to invest in Hong Kong in establishing their presence in the island city.
As for the licensing regime for virtual asset service providers, operations will commence in June. The secretary also revealed that the city’s top financial watchdog, the Hong Kong Monetary Authority (HKMA), is currently working on a regulatory regime for stablecoins. Relevant regulations will reportedly come into effect by next year.