Hong Kong’s Legislative Council Debuts Web3 & Virtual Assets Subcommittee

In a proactive step towards advancing its digital landscape, Hong Kong’s Legislative Council has inaugurated a dedicated subcommittee focused on Web3 and virtual assets. This initiative underscores Hong Kong’s strategic commitment to embracing emerging technologies and fostering an environment conducive to digital transformation.

By establishing this subcommittee, the Legislative Council aims to explore regulatory frameworks, promote technological innovation, and leverage Web3 and virtual assets to enhance economic growth and global competitiveness in the digital economy.

Subcommittee’s Objectives and Initiatives

Hong Kong SAR Legislative Council member Wu Jiezhuang recently announced the establishment of the Web3 and virtual asset subcommittee, signaling a pivotal move aimed at catalyzing growth in these sectors. The subcommittee is actively soliciting insights from global industry experts to shape policy recommendations and future development strategies.

Key areas of focus include formulating balanced regulatory frameworks for Web3 technologies, fostering international collaborations to position Hong Kong as a global Web3 hub, integrating artificial intelligence with Web3 advancements, and ensuring robust policy frameworks for decentralized autonomous organizations (DAOs).

Furthermore, the subcommittee seeks to attract top talent and enhance investor protections to bolster market confidence and explore regulatory measures to govern stablecoins and custody services effectively.

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Hong Kong’s Competitive Advantage in Virtual Assets

Hong Kong has emerged as a prominent player in the virtual asset market, bolstered by advantageous factors such as low tax rates, a transparent legal framework, and robust investor protection mechanisms. Hu Zhenbang, CFO of OSL Group, highlights Hong Kong’s appeal to global investors due to its tax regime that does not levy asset value-added taxes, contrasting with jurisdictions like Japan and Australia.

Hong Kong’s role as a financial hub further enhances its attractiveness, attracting international funds and benefiting from strong support from China. Moreover, Hong Kong’s banking sector’s favorable stance towards virtual assets sets it apart, with local banks more open compared to counterparts in Japan, facilitating a conducive environment for virtual asset institutions.

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