Hong Kong made headlines in April when it introduced Bitcoin and Ethereum ETFs, and now the city is delving deeper into the crypto sector with a new study. The Hong Kong Legislative Council has announced the formation of a subcommittee dedicated to Web3 and virtual asset development.
Johnny Ng, a member of the Legislative Council, will lead the subcommittee, which aims to gather feedback from the global Web3 industry to shape policy recommendations and chart the future of the crypto industry in Hong Kong. The focus areas include enhancing investor protection, fostering financial stability while encouraging stablecoin innovation, and exploring regulations for professional crypto custody services.
Ng’s office is also seeking input on the integration of artificial intelligence with Web3 and proposing regulations for decentralized autonomous organizations (DAOs). This move signals Hong Kong’s progressive approach to cryptocurrency, contrasting with the stricter measures seen in mainland China.
In recent years, Hong Kong has embraced crypto firms and implemented a licensing system for crypto trading platforms. The introduction of spot Bitcoin and Ethereum ETFs earlier this year has been a significant development, with discussions underway about potentially adding staking to spot ether ETFs.
The support for Bitcoin from key figures like Animoca Brands Chairman Yat Siu and Securities and Futures Commission Chairman Julia Leung highlights Hong Kong’s commitment to nurturing a vibrant and innovative crypto industry. This forward-thinking approach positions Hong Kong as a key player in the global crypto landscape.
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