“A supervisory system that demonstrates market potential”
Hong Kong’s Finance Secretary Paul Chan gave a speech at a Web3-related event on the 9th, reiterating that Hong Kong aims to become a regional crypto asset (virtual currency) hub.
Chan also touched on the chain of defaults in the cryptocurrency industry in 2022, stating:
Despite the bankruptcy of cryptocurrency exchanges last year, Hong Kong can provide a high-quality environment for cryptocurrency companies to set up bases. Hong Kong has a robust regulatory framework consistent with international norms and standards.
Chan added that Hong Kong will serve as a springboard for high-quality cryptocurrency firms to set up operations as cryptocurrency trading is expected to expand rapidly in the near future. The Hong Kong government is committed to proper supervision so that the market can reach its potential.
What is Web3
The current centralized web is defined as Web2, and refers to an attempt to realize a non-centralized network using blockchain. A typical feature is the use case of decentralized networks such as blockchain, such as access to dApps using virtual currency wallets.
In addition, Chan said the Hong Kong government and regulators are conducting a number of pilot projects to test the technical strengths of cryptocurrencies and explore their adoption.
The company also plans to tokenize green bonds issued by the government and raise funds from institutional investors.
What is a green bond?
Bonds issued by local governments, companies, financial institutions, etc. for the purpose of improving the environment. It is used for measures against global warming, promotion of natural energy, and others. It is attracting attention against the background of the United Nations Sustainable Development Goals (SDGs).
Cryptocurrency-related policies promoted by Hong Kong
Chan said that in the past two months, many large technology companies and high-tech start-ups have contacted the Hong Kong government and are planning to set up offices in Hong Kong or go public. The background to this is that the Hong Kong government is promoting environmental improvements.
At the same event, Joseph Chan, Deputy Director General of the Hong Kong Government Financial Services and Treasury Department, said, “The Securities Regulatory Commission is developing regulations and rules for cryptocurrency exchanges, and we will have a public consultation as soon as possible this year. I want to start the ,” he said.
Since October last year, the Hong Kong government has launched a policy to attract virtual currency-related companies as an international financial hub.
For example, Hong Kong’s Legislative Council (parliament) just passed a law in December to introduce a licensing regime for virtual currency service providers (VASPs). The Money Laundering and Countering the Financing of Terrorism Act of 2022 also imposes customer risk verification and recordkeeping requirements on VASPs.
It has also launched its own NFT (non-fungible token) and digital currency e-HKD (digital Hong Kong dollar) proof-of-concept programs.
Apart from the government, G-Rocket, a startup promotion group co-founded by Hong Kong legislators, has also announced that it will support 1,000 Web3 startups over the next three years.
Relation: Hong Kong’s G-Rocket to support 1,000 Web3 companies in next 3 years