TechFlow reported that Honorable Derek Chu, Legislative Council Member (Technology and Innovation) of the Hong Kong Special Administrative Region, stated during his keynote speech "Unlocking Web3 Potential with Technology" at the "2024 Hong Kong Web3 Festival": "We will soon see spot Bitcoin ETF trading in Hong Kong. We are now entering the ETH2 era, marked by competition between Optimistic and zkRollup technologies, and we will further witness crypto’s impact on consumer applications, finance and investment, traditional economies, and central banks. The industry is increasingly led by financial professionals, and financial institutions as well as experts are becoming more integrated with Hong Kong's regulatory governance. Together, we must grow and strengthen the crypto ecosystem."
On Hong Kong's progress in virtual assets, Derek Chu noted that the new Virtual Asset Trading Platform (VATP) regulatory framework has been implemented, and the Hong Kong Monetary Authority (HKMA) has launched a sandbox for stablecoin issuers. Going forward, the government will conduct public consultations on legislative proposals for regulating Virtual Asset Over-the-Counter (VAOTC) service providers and introduce a dedicated regulatory framework for virtual asset custodians. He added that Hong Kong offers an excellent environment with significant advantages in government support, financial systems, infrastructure, capital inflows, talent, and tax regime. Financial markets, technology, and regulation must advance in tandem to foster a healthier Web3 ecosystem.
