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Hong Kong Legislative Council Seeks Public Input on Web3 Policies

The Hong Kong Legislative Council seeks international input to refine its Web3 and virtual asset strategies. This initiative is part of a broader effort to establish Hong Kong as a leader in digital innovation and enhance its global standing in the rapidly evolving digital economy.

Council Seeks Global Input on Web3 Development

Johnny Ng Kit-Chong, a Hong Kong Legislative Council member, announced the council’s initiative to collect ideas from international tech and financial experts. This effort is part of a broader strategy to develop a regulatory framework that supports technological advancements while ensuring legal and regulatory compliance. The council has established a Subcommittee on Web3 and Virtual Asset Development to integrate community feedback into comprehensive policy recommendations.

These consultations will focus on enhancing the foundational technologies necessary for Web3 alongside developing legal frameworks that foster a secure and compliant digital environment. Feedback is also sought on improving international collaborations to strengthen Hong Kong’s ties as a globally integrated hub for Web3 technologies.

Strategies for a Thriving Digital Economy

The council’s call for input includes several key areas: advancing artificial intelligence integration, supporting decentralized autonomous organizations (DAOs) growth, and strategies to attract skilled professionals in Web3 and financial technology. Additionally, enhancing consumer protection, increasing market confidence, and ensuring the safe custody of digital assets are on the agenda.

The Legislative Council is evaluating new regulatory frameworks for stablecoins, focusing on maintaining financial stability while fostering innovation. This initiative recognizes stablecoins’ growing importance in the digital currency space. By establishing clear guidelines, the council aims to ensure these digital assets can be safely integrated into the financial system without introducing undue risk.

Additionally, there is an emphasis on professional custody services for virtual assets. The council recognizes the necessity of secure management practices for digital holdings, which are crucial for investor protection and overall market confidence. Developing these frameworks will protect consumers and enhance the operational standards and reliability of the cryptocurrency market.

Hong Kong Tackles Crypto Challenges with New Task Force

Despite these ambitious plans, the number of cryptocurrency exchanges applying for operational licenses in Hong Kong has remained unchanged. Notably, two exchanges, IBTCEX and QuanXLab, have withdrawn their license applications earlier, indicating potential challenges within the local regulatory environment.

In response to these challenges, in July 2023, the Hong Kong government established a task force to oversee Web3 development. This task force consists of 15 industry experts and 11 government officials committed to promoting the ethical growth of Web3 technologies.

This proactive approach by the Hong Kong Legislative Council and the formation of the task force underline the city’s commitment to becoming a central hub for technological innovation and financial growth in digital assets and Web3 technologies.

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