Johnny Ng, a member of the Hong Kong Legislative Council, announced the establishment of a new subcommittee focusing on Web3 and virtual asset development.
Hong Kong Parliament Establishes Crypto Legislative Subcommittee
Ng announced that his office is actively collecting policy feedback from the global Web3 industry. The aim is to gather insights, offer policy recommendations, and discuss the future direction of the crypto industry in Hong Kong.
Ng, who chairs the new subcommittee, highlighted several key focus areas. These include increasing protection for crypto investors, ensuring financial stability without hindering stablecoin innovation, and exploring regulatory measures for professional crypto custody services.
Additionally, Ng’s office is seeking policy recommendations for the integrated development of artificial intelligence and Web3, as well as regulatory proposals for decentralized autonomous organizations (DAOs).
The move marks a significant step in Hong Kong’s approach to cryptocurrency and stands in sharp contrast to broader crackdowns on crypto trading and mining seen in mainland China.
Last year, Hong Kong began welcoming crypto firms and introduced a licensing regime for crypto trading platforms in June 2023.
This regime signals a more open stance towards digital assets by allowing licensed exchanges to offer retail trading services.
In April, Hong Kong introduced spot Bitcoin and Ethereum exchange-traded funds (ETFs). Discussions are ongoing about potentially including staking in spot ether ETFs, a move that could provide a competitive advantage.
“As far as how quickly it will happen, there is an optimistic part of me that wants it to happen within the year,” said Animoca Brands Chairman Yat Siu.
Hong Kong Securities and Futures Commission Chairman Julia Leung also expressed her support for Bitcoin, noting its enduring power as an alternative asset.
This support also underlines Hong Kong’s commitment to fostering a robust and innovative crypto industry.
*This is not investment advice.
