Hong Kong's Legislative Council has taken a proactive step by establishing a dedicated subcommittee focused on Web3 and virtual asset development. This initiative underscores Hong Kong's strategic commitment to embracing emerging technologies and fostering a conducive environment for digital transformation.

The key objectives of the subcommittee include:

1. Formulating balanced regulatory frameworks for Web3 technologies to support innovation while ensuring appropriate safeguards.

2. Fostering international collaborations to position Hong Kong as a global Web3 hub, leveraging its unique advantages as a financial center.

3. Integrating artificial intelligence with Web3 advancements and developing regulatory frameworks to address the opportunities and challenges presented by this convergence.

4. Ensuring robust policy frameworks for decentralized autonomous organizations (DAOs) to enable their healthy development in Hong Kong.

5. Attracting top talent and enhancing investor protections to bolster market confidence, as well as exploring regulatory measures for stablecoins and custody services.

Hong Kong's competitive edge in the virtual asset market is underpinned by its low tax rates, transparent legal framework, and investor-friendly banking policies, making it an attractive destination for global investors.