From a spark to a prairie fire, major events in Hong Kong Web 3.0 in 2024

Author of the article: Lesean, MetaEra

On October 31, 2022, an online AMA titled "The Great Tide is Rising in Hong Kong, Interpretation of Hong Kong's New Encryption Policy" was launched on Twitter Space. This one-hour live broadcast gathered many Chinese blockchain heavyweights. Hundreds of thousands of people poured into the live broadcast room. It was like a carnival and shouting for the sailing of a big ship.

At that time, the Hong Kong SAR government had just issued the "Policy Declaration on the Development of Virtual Assets in Hong Kong". In the declaration, the government stated its policy stance and guidelines: it would cooperate with the legal and regulatory systems to provide a convenient environment.

In the blink of an eye, two years have passed. Web 3.0 has developed rapidly in Hong Kong from a spark to an unstoppable prairie fire. And that live broadcast with hundreds of thousands of people was the starting point of the MetaEra dream and our original intention to stick to Hong Kong. Since its establishment, MetaEra has clearly positioned itself as a "leading global media based in Hong Kong", with influence radiating across Asia and even the world.

In early December 2024, Kong Jianping, director of Hong Kong Cyberport Management Co., Ltd. and chairman of Nano Labs, shared at the forum: "First, Hong Kong's positive attitude and now the Trump administration's development of digital currency have led to the rapid price of Bitcoin exceeding 10 Ten thousand US dollars. I am optimistic about Hong Kong’s development in the field of digital encryption and even the entire Web 3.0 field in the long term. Hong Kong may surpass New York and become the world’s financial center.”

This view is not groundless. Looking at the development of Web 3.0 in Hong Kong in 2024, while building a more stable and convenient market environment, it is also leveraging its long-standing advantages as a financial center.

Steady progress in orderly compliance

Unlike other regions, Hong Kong's development process of Web 3.0 is orderly and compliant. In order to avoid wild growth, while giving freedom, it focuses on legal updates, industry supervision, issuance of licenses, and promotion of stable coins. . Especially as an established financial center, Hong Kong's strict regulations and transparent standards for financial licenses and virtual asset service provider (VASP) licenses provide a safer way for relevant customers. The Hong Kong government officially opened virtual asset service provider (VASP) license applications on June 1, 2023, and requires virtual asset service providers to submit license applications on or before February 29, 2024. As of December 18, 2024, there are seven members of the Hong Kong Licensed Virtual Asset Trading Platform (VATP), including OSL Exchange, HashKey Exchange, HKVAX, Cloud Account Greater Bay Area Technology (Hong Kong), DFX Labs, and Hong Kong Digital Asset Trading Group and Thousand Whales Technology.

Stablecoins, as a virtual asset designed to maintain a relatively stable value with certain assets (usually currencies), can further mobilize the interconnection between Hong Kong's traditional finance and virtual asset markets. In January 2024, in order to further promote the legislative process of the stablecoin regulatory framework, the Hong Kong Monetary Authority issued a consultation document, proposing more detailed regulatory measures, and clarified for the first time in the document Fiat-Referenced Stablecoins, Definition of FRS; March 12, 2024 On the same day, the Hong Kong Monetary Authority officially launched a regulatory sandbox for Hong Kong dollar stablecoins, providing an effective channel for the Hong Kong Monetary Authority to exchange views on the proposed regulatory system with the industry; in the same month, in order to support the development of Hong Kong’s tokenized market, the Hong Kong Monetary Authority launched a new wholesale-level central bank Digital currency (wCBDC) sandbox project Ensemble. This sandbox puts Hong Kong ahead of much of the rest of the world when it comes to stablecoin legislation.

In July 2024, the Hong Kong Monetary Authority and the Treasury Bureau released a "Consultation Results Report on the Implementation of Legislative Proposals for Hong Kong's Stablecoin Issuer Supervision System". For the first time, the Hong Kong Monetary Authority made it clear that tokens with high quality and high liquidity assets can be accepted Tokenized form serves as the issuer’s reserve asset. On July 18, the Hong Kong Monetary Authority released the list of participants in the "Sandbox" for stablecoin issuers. The first batch of companies selected include: Standard Chartered Bank, Animoca and Yuanbi Innovation Technology, Hong Kong Telecom, and JD Coin Chain Technology.

On December 6, the Hong Kong government published the Stable Coin Bill to introduce a regulatory system for fiat currency stable currency issuers in Hong Kong. It was read for the first time on December 18. The bill aims to improve the regulatory framework for virtual asset activities and to Address the potential risks posed by fiat stablecoins to financial stability, ensure users have adequate protection, and leverage the benefits that virtual assets and related technologies can bring to further consolidate Hong Kong’s position as a global center for the development and supervision of stablecoins.

In terms of RWA, the Hong Kong Monetary Authority issued a "Sales and Distribution of Tokenized Products" circular in February this year to strengthen the management of institutions launching tokenized products; the Hong Kong Securities and Futures Commission stated in May that investment in real world assets (RWA) may be harmful to Opening up to retail investors to attract more capital and fintech talent to Hong Kong. In August, Ant Digital Technology announced that it had cooperated with Langxin Group to successfully complete the first domestic real asset tokenization (RWA, Real World Assets tokenization) financing based on new energy entities in Hong Kong, with a financing amount of approximately RMB 100 million. This innovative transaction was selected as the first batch of real-world asset tokenization cases in the Hong Kong Monetary Authority (HKMA) Ensemble project sandbox. At Hong Kong Fintech Week on October 28, Ant Digital once again publicly stated that it would invest in RWA business in Hong Kong and launch the "Two Chains and One Bridge" platform.

On August 28, 2024, the Hong Kong Monetary Authority officially launched the "Ensemble" sandbox project, which will use experimental tokenized currencies to promote interbank settlement and focus on tokenized asset transactions, marking the Hong Kong government's progress in tokenized assets. The forward-looking layout of the field also demonstrates Hong Kong’s determination to become a global RWA tokenization center.

Multi-party support to build the foundation ecosystem

As early as 2022, the Hong Kong government's declaration stated that Hong Kong, as an international financial center, will support the innovation and ecosystem of international virtual asset businesses. The Hong Kong government will take the lead in issuing non-fungible tokens (NFTs) and promoting the tokenization of green bonds. , digital Hong Kong dollar and other related pilot projects. At the same time, the Hong Kong Stock Exchange will launch Asia’s first batch of virtual asset ETF products and allocate HK$50 million to support the Hong Kong Web 3.0 ecosystem. Starting from June 1, Hong Kong has officially become the first region in the world to regulate and license virtual asset trading platforms. On April 11, 2023, Hong Kong Chief Executive Li Jiachao attended the founding ceremony of the Hong Kong Web 3.0 Association and delivered a speech, clearly conveying Hong Kong's determination to develop Web 3.0 to the outside world, and hoped to provide services for the ecological development of Web 3.0 through industry associations and other organizations.

In 2024, Hong Kong will invest more and more heavily in Web 3.0 in terms of policies, corporate support, and talent cultivation. On January 4, 2024, the "New Opportunities for Digital Economy Development Summit" was successfully held at the Hong Kong Financial City Hall, and the Hong Kong Web 3.0 Standardization Association (W3SA-HK) was established. In order to establish industrial consensus, promote technological innovation, standardize the industrial ecology, support government decision-making, and expand Hong Kong's international influence and voice in the field of Web 3.0. On May 30, 2024, Cyberport announced the establishment of a "Web 3.0 Investment Circle" under the "Cyberport Investment Network", aiming to establish an exclusive investor network in the Web3.0 field to promote investments related to Web 3.0 projects. In October, Cyberport and Silicon Valley venture capital Draper Dragon jointly established the Web 3.0 accelerator "Hong Kong Cyberport Draper Dragon Web 3.0 Accelerator" to actively promote Hong Kong's Web 3.0 entrepreneurial ecosystem. The Hong Kong Web3 and Virtual Asset Development Subcommittee proposed to increase investment in Hong Kong Cyberport and Hong Kong Science Park. As of December, Hong Kong has nearly 300 Web 3.0-related companies.

On the occasion of the second anniversary of Hong Kong's new encryption policy, Hong Kong SAR Chief Executive Lee Ka-chiu announced the 2024 policy address, which focused on increasing the development of "new productive forces" and establishing a 10 billion "Innovation and Technology Industry Guidance Fund"; optimizing "Innovation and Technology Venture Capital" Fund"; allocated NT$180 million to launch the "Innovation and Technology Accelerator Pilot Program" to match market funds, attract professional start-up service organizations at home and abroad to settle in Hong Kong, and put forward more specific measures in terms of consolidating its dominant position as a financial center and introducing high-end international talents. .

Web3Labs, a leading incubator focusing on the Web 3.0 field, strives to build a global entrepreneurial highland for the Web 3.0 industry in accordance with the Hong Kong government's declaration, and has allocated US$10 million to provide full ecological services and hold online and offline activities. On November 11, Web3Labs established a new offline Web 3.0 industrial base -Web3Labs HK Center in Causeway Bay, Hong Kong. Taking advantage of Hong Kong's unique geographical location, financial advantages and open business environment, it will apply Web 3.0 technology to a wider range of fields. Provide support and help to more entrepreneurs and promote the entire industry to move forward more steadily. Web3Labs has also officially announced joint "acceleration plans" with DFINITY Foundation, KuCoin Labs, TON and other institutions in 2024. Bring underlying technology and financial support to the ecological development of the industry.

On November 27, the Web3 and Virtual Asset Development Subcommittee of the Hong Kong Legislative Council publicly invited all walks of life to submit submissions on Web 3.0 and virtual asset development issues, aiming to further promote the development of Hong Kong's Web 3.0 and virtual asset industry. The main focus is on licenses and sandbox regulations related to virtual asset transactions and the development of the Web3 ecosystem.

International Web 3.0 event boosts Hong Kong industry ecology

The Web 3.0 trend is sweeping Hong Kong, and various large-scale international events have also landed in Hong Kong, providing a platform for industry professionals to communicate and cooperate, and also focusing the world's attention on Hong Kong. The holding of every large-scale event brings massive opportunities for innovative thinking and cooperation.

On April 6, 2024, the "2024 Hong Kong Web3 Carnival" was held at the Hong Kong Convention and Exhibition Center. As a major event in the cryptocurrency field, the 3-day carnival attracted 30,000 participants and had more than 150 sub-events. The event was a star-studded event, with Hong Kong Financial Secretary Paul Chan Mo-po, Legislative Council Member Chiu Tat-kan, Innovation, Technology and Industry Bureau, Hong Kong Trade Development Council, Cyberport, Monetary Authority and other important guests on the stage. Many well-known Web 3.0 practitioners attended the event to share. This event has also become an annual event for Web 3.0 in Hong Kong. During the conference, MetaEra, as an important partner, successively hosted events such as the Hong Kong Crypto Finance Forum and the Hong Kong Web 3.0 Ecological Welcome Reception, linking well-known Hong Kong Web 3.0 institutions and guests while also providing a wealth of event content.

On May 9 and 10, 2024, the Bitcoin Asia Summit Bitcoin Asia 2024 opened grandly at the Kai Tak Cruise Terminal in Hong Kong. The Bitcoin Summit has always been held in the United States, and it was held in Hong Kong for the first time in Asia. This shows Hong Kong's important position in Web 3.0 and its determination and courage to strive to build Hong Kong into a global cryptocurrency center.

In November 2024, Hong Kong FinTech Week, a week-long financial technology event, will be held at AsiaWorld-Expo, attracting more than 100 economies and more than 30,000 participants. The forum topics focus on artificial intelligence, blockchain and digital assets, Financial innovation, etc. It is worth noting that the participants and sharers at this conference have increased the proportion of supervision and traditional financial institutions. The collision of tradition and innovation has provided a new direction for the development of Web 3.0 in Hong Kong.

**The innovation and impact of the development of Web 3.0 on Hong Kong’s

financial industry**

On February 8, 2024, the Hong Kong government launched a public consultation on the legislative proposal to establish a licensing system for virtual asset over-the-counter trading service (OTC) providers. This also means that virtual currency OTC will usher in an era of compliance in Hong Kong. After all, the thunderstorm of JPEX in 2023 is inseparable from the virtual currency OTC service provider Crypto Leopard. The Hong Kong government hopes to provide users with more protection and remedial measures through effective supervision and clear industry standards.

On April 30, 2024, six virtual asset spot ETFs were officially listed on the Hong Kong Stock Exchange, including the Bitcoin and Ethereum spot ETFs of China Asset Management (Hong Kong), Boshi International, and Harvest International. These six ETFs show certain differences in product fees, transactions, issuance, virtual asset platforms, etc. The day of listing was regarded as a historic moment for the Hong Kong capital market, because the Ethereum spot ETF was issued a full three months earlier than the United States.

Entering the second half of 2024, U.S. President-elect Trump’s high attention and support for cryptocurrency has ignited market enthusiasm, ushering in a strong growth wave for the cryptocurrency market, and even broke through the US$100,000 mark on December 5, setting a new record According to historical records, Hong Kong virtual asset spot ETFs have also hit record highs, especially the Bitcoin ETF launched by CSOP, the Hong Kong subsidiary of Southern Fund, which has the largest trading volume. As of the close of trading on November 12, the Southern Bitcoin ETF The cumulative increase this year has reached 87.88%.

At the same time, cryptocurrency concept stocks are also rising. When Bitcoin exceeded the US$100,000 mark, Boyaa Interactive (00434.HK), Xiongan Technology (08267.HK), and Meitu Company (01357.HK) rose respectively. 22.49%, 14%, 6.29%. Affected by various factors such as global economic uncertainty and investor confidence, cryptocurrency concept stocks are highly volatile, but the overall potential is huge, and it is believed that there will be a stronger rise in the future.

Hong Kong plans to exempt hedge funds, private equity funds and some family offices from tax on investment income in cryptocurrencies and other alternative assets to boost Hong Kong’s appeal as a wealth management center.

On November 25, Hong Kong digital bank ZA Bank launched a virtual asset trading function for retail users within its App, becoming the first bank in Asia to provide cryptocurrency trading services to retail users. At the same time, HashKey Exchange, Hong Kong's largest licensed virtual asset exchange, announced the launch of HashKey Pro, which supports API transactions, bulk trading services, as well as enterprise-level account structure and authority management, and provides institutional investors with user asset insurance and transaction matching engines. . The cooperation between ZA Bank and HashKey Exchange represents a new trend in collaboration between the traditional banking system and the digital currency ecosystem, providing a stronger competitive advantage for the development of the Web 3.0 ecosystem in Hong Kong.

On December 12, HashKey Exchange announced that its asset size reached a historic HK$10 billion for the first time. As of 2024, HashKey Exchange's cumulative transaction volume has reached HK$580 billion.

**The United States is fueling the fire of Web 3.0 in Hong Kong and it is

getting stronger and stronger.**

At a new historical node, Trump announced a high-profile Bitcoin strategic reserve plan, adding further impetus to the development of Bitcoin. When other parts of the world responded to the United States and planned to include Bitcoin in the national strategic reserve, Hong Kong also showed friendly Intention: At the Hong Kong Legislative Council meeting on December 11, Councilor Ng Kit-chuang suggested to Acting Secretary for Financial Services and the Treasury Chan Ho-Lin that the Hong Kong government consider including digital assets and cryptocurrencies in fiscal reserves, and use the Exchange Fund to continue to purchase and hold them for a long time. have. Chen Haolian responded mildly, and his attitude indicated that cryptocurrencies are expected to be included in fiscal reserves.

**Influential figures ride the waves to boost Hong Kong’s ecological

development**

The rapid and healthy development of Hong Kong's Web 3.0 is inseparable from visionary and courageous leaders and practitioners. They are keenly aware of market trends, grasp policy trends, bravely stand on the trend, and dare to be the first. In October 2024, MetaEra launched the [Hong Kong Zone] on the second anniversary of Hong Kong's new encryption policy, and launched a series of interviews with influential figures, and many governments who have made outstanding contributions and had significant influence in promoting the development of Hong Kong's Web 3.0 Parliamentarians, experts and scholars, investors, entrepreneurs, etc. held high-end dialogues. Convey their development concepts, policy suggestions, construction directions and other information to the public who are concerned about the development of Web 3.0 in Hong Kong. Here, we have also compiled some representatives’ summaries and opinions on the development of Web 3.0 in Hong Kong for the benefit of readers.

“In terms of virtual asset supervision, Hong Kong implements a strict licensing system to protect investors and increase market transparency. The government encourages asset management companies to invest in virtual assets while strengthening risk management and compliance procedures to ensure the long-term healthy development of the market. In addition, The government comprehensively promotes innovative financial services, supports the development of virtual banks and online insurance, and uses big data and artificial intelligence to improve the diversity and quality of financial services, thereby attracting more international investment.”

——Member of the Hong Kong Legislative Council Ng Kit-chuang

"In this era of rapid technological development, Hong Kong's Web 3.0 ecosystem is facing unprecedented opportunities and challenges. As a global financial center, Hong Kong is standing at the forefront of the Web 3.0 revolution. I hope we can seize this historical opportunity and through Innovation and cooperation create a more open and inclusive digital economic ecosystem.”

——Hong Kong Legislative Council Member Qiu Dagen

"In the next five years, Hong Kong's achievements in the field of Web 3.0 will depend on the development trend of the entire industry. From a macro perspective, Hong Kong's status in Web 3.0 is expected to surpass its status in Web 2.0, and even surpass its status as a traditional financial center . With its comprehensive advantages in talent, capital, information and industrial chain funds, Hong Kong has demonstrated stronger competitiveness than Singapore, Dubai and other regions in key areas such as Web 3.0 finance, DePIN, and RWA.”

——Kong Jianping, member of the Hong Kong Web 3.0 dedicated team, director of Cyberport, and founder of Nano Labs

"We are pleased to see Hong Kong's positive attitude in developing the Web 3.0 industry. As one of the world's leading financial centers, Hong Kong has the technical infrastructure and professional talents required to become a global Web 3.0 hub. Hong Kong's investment in advancing the Web 3.0 regulatory framework , such as the Hong Kong Monetary Authority’s stablecoin project, demonstrates its balanced approach to innovation and compliance. We believe Hong Kong has great potential to play a key role in shaping Web 3.0 and the open metaverse, and driving the future of digital property rights. "

——Xiao Yi, co-founder and executive chairman of Animoca Brands

"The main theme of Hong Kong in the next ten years is integration. We will actively build a more open, innovative and stable financial market driven by the principles of "no regulation, no finance", "long-termism" and "license first". "

——Weng Xiaoqi, former CEO of HashKey Exchange

"Under the development trend of Web 3.0, Hong Kong dares to become the leader of the wave of innovation. In the future, Hong Kong will develop into the core hub of the global Web 3.0 economic wave."

——Du Jun, Executive Director and CEO of SINOHOPE

“Hong Kong’s role as a gateway where East and West meet will further expand the potential of stablecoins in the Asian market and meet the growing demand for cross-border trade and payments. Stablecoins can eliminate friction in global transactions by synchronizing information and capital flows. RD Technologies is creating a compliant and stable digital currency that provides speed and cost advantages for enterprises’ cross-border transactions.”

——Liu Yu, CEO of Yuanbi Technology

"As the intersection of global finance and technology, Hong Kong has all the conditions to lead Web 3.0 innovation. I look forward to working with different stakeholders to jointly promote the prosperity and development of the Web 3.0 ecosystem in the context of Hong Kong's Web 3.0 development."

——Caspar Wong, CEO of Web3Labs

There is policy direction, ecological protection, financial innovation, and leadership. The spark of Web3.0 was ignited in Hong Kong two years ago. Now it is getting more and more prosperous and has the potential to start a prairie fire. As Hong Kong grows day and night, MetaEra will also reach a new historical starting point in 2024 with an astonishing ten-fold business growth. We often say that whoever has the right to speak can become the rule maker. In the days to come, MetaEra, as a Web3.0 information platform, will definitely help Hong Kong stand at the center of the Web3.0 stage. Under the spotlight, you and I are both the trendsetters at this moment.