. The Hong Kong Legislative Council is actively looking for input on a number of important Web3 policy development issues, such as striking a balance between the legal, regulatory, and technical frameworks.
According to Johnny NG Kit-Chong, a member of the Hong Kong Legislative Council, suggestions for policies and topical talks about the future course of the Web3 and virtual assets industries are currently being asked for from the international community. A post on the social media platform X states that in order to encourage the growth of Web3 and virtual assets in Hong Kong, the Legislative Council formed a subcommittee on Web3 and virtual asset development.
The plan will be thoroughly examined, condensed, and delivered to the government via the Legislative Council system. With the help of this project, Hong Kong hopes to become a global centre for Web3 innovation by influencing legislation and regulations.
In order to create a cohesive environment that supports the technical and legal aspects of Web3, the Hong Kong Legislative Council is actively seeking feedback on a number of critical aspects of Web3 policy development, including striking a balance between technical, legal, and regulatory frameworks and ensuring robust and clear regulations. Feedback on strengthening international cooperation to strengthen Hong Kong’s standing as a globally connected Web3 hub is also of interest to the Council.
To enhance artificial intelligence (AI) regulation, this entails investigating the convergence of Web3 technology and artificial intelligence.
It also entails creating strategies to draw in and develop talent in Web3 technology and financial innovation, as well as regulations to encourage the healthy growth of Decentralised Autonomous Organisations (DAOs). Apart from the Web3 policy, the Legislative Council is also concentrating on the virtual asset sector and trying to figure out how to help it expand in Hong Kong.
In order to do this, it looks into ways to protect consumers and investors in virtual assets, increase market confidence, and improve investor and consumer safety. The Council also intends to evaluate the possible advantages and disadvantages of stablecoins and create legal frameworks that strike a balance between financial stability and innovation. It also develops appropriate regulatory measures to accommodate the growing demand for professional custody services for virtual assets.
The Hong Kong government established a task team in July 2023 with 11 important government officials and 15 representatives from the sector to supervise the advancement of Web3 and concentrate on morally advancing its expansion. Nonetheless, there are fewer and fewer cryptocurrency exchanges applying for licences to operate in Hong Kong. IBTCEX and QuanXLab, two cryptocurrency exchanges, withdrew their applications on May 13 after first filing in February 2024.