Hong Kong is now inviting the global community to share their thoughts on the future of Web3 and virtual assets. This move aims to shape the city’s policy and regulatory landscape, positioning it as a global hub for Web3 innovation. The Hong Kong Legislative Council has established a subcommittee to promote the development of Web3 and virtual assets in Hong Kong.

The council is seeking feedback on several key aspects of Web3 policy development. These include balancing technical, legal, and regulatory frameworks to create a cohesive environment that supports the technical and legal aspects of Web3. They also want to enhance international cooperation to solidify Hong Kong’s position as a globally connected Web3 hub. This includes exploring the convergence of artificial intelligence and Web3 technology to improve AI regulation.

The council is also focusing on the virtual asset industry and looking to identify measures to facilitate its growth in Hong Kong. This includes enhancing investor and consumer protection, boosting market confidence, and safeguarding virtual asset investors and consumers. Additionally, they plan to assess stablecoins’ potential benefits and risks and develop regulatory frameworks that balance financial stability with innovation.

Hong Kong has formed a task force comprising industry participants and government officials to oversee the development of Web3. However, the number of crypto exchanges seeking operational licenses in Hong Kong is steadily decreasing. Despite this, the council remains committed to promoting the growth of Web3 and virtual assets in the city.