The Hong Kong Legislative Council is actively seeking feedback on several critical aspects of Web3 policy development, including balancing technical, legal and regulatory frameworks.

Hong Kong Legislative Council member Johnny NG Kit-Chong has announced the establishment of a Subcommittee on Web3 and Virtual Asset Development to foster the growth of Web3 and digital assets in Hong Kong. Seeking input from industry players worldwide, the council aims to propose policy recommendations and thematic discussions to shape Hong Kong's policy and regulatory landscape and position it as a global hub for Web3 innovation.

The council is soliciting feedback on various aspects of Web3 policy development, including creating a cohesive environment with robust regulations, enhancing international cooperation, exploring AI integration with Web3, supporting the development of DAOs, and attracting talent in Web3 technology and financial innovation.

In addition to Web3 policy, the Legislative Council is focusing on the digital asset industry, seeking measures to facilitate its growth, enhance investor protection, boost market confidence, and address stablecoins' benefits and risks. The council also plans to develop regulatory frameworks for professional custody services for virtual assets.

This initiative follows the formation of a task force in July 2023 to oversee Web3 development ethically. However, the number of crypto exchanges seeking operational licenses in Hong Kong has declined, with exchanges like IBTCEX and QuanXLab withdrawing their applications filed in February 2024.