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Hong Kong is making a concerted effort to position itself as a global Web3 hub, with a legislator seeking input from international experts on creating a thriving Web3 ecosystem in the region.

In a June 22 X post, Johnny Ng, a member of Hong Kong’s Legislative Council who also heads a newly formed subcommittee on Web3 and virtual asset development, said his office seeks to gather insights from industry players to “discuss the future of [Web3] in the region.

Ng’s call for proposals covers a broad spectrum of topics crucial to Web3’s development. He’s seeking guidance on establishing a balanced regulatory framework that fosters innovation while ensuring consumer protection. In addition, he’s interested in strategies to attract top talent and investment to Hong Kong.

Other areas of interest include the integration of artificial intelligence (AI) with Web3 and the role of decentralized autonomous organizations (DAOs). Ng is also keen to explore the potential applications and risks of stablecoins, as well as the need for professional custody services for virtual assets.

Ng has invited stakeholders worldwide to submit their proposals, which he will then compile and present to the government through the Legislative Council platform.

Hong Kong’s approach to crypto, Web3

Unlike Mainland China’s crackdown on cryptocurrencies, with its blanket ban on related transactions, Hong Kong’s approach to the new asset class has been described as proactive. In June 2023, authorities officially implemented a licensing regime for virtual asset trading platforms overseen by the region’s Securities and Futures Commission (SFC). Later in the month, the government formed a task force chaired by the financial secretary to promote the growth of Web3. That group reportedly comprises 15 industry participants and 11 key government officials.

In April this year, the SFC approved the trading of the first wave of spot Bitcoin and Ether exchange-traded funds (ETFs), with at least three local issuers launching their respective products. It was also reported that the regulator is considering allowing staking for ETH ETFs.

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