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Hong Kong Financial Secretary Outlines Web3 Strategy at Industry Forum
Paul Chan presents Hong Kong’s approach to regulating and promoting Web3 technologies, including blockchain, digital assets, and AI integration.
On April 7, 2025, Financial Secretary Paul Chan delivered a speech at the Hong Kong Web3 Festival, outlining the government’s strategy toward blockchain, digital assets, and Web3 development.
Chan highlighted the growing institutional adoption of Web3 technologies, noting that banks, asset managers, and brokers are increasingly incorporating digital assets into their offerings.
He pointed to blockchain’s role in improving transaction efficiency, reducing costs, and increasing market transparency.
Hong Kong’s regulatory framework for virtual assets, introduced over two years ago, follows a 'same activity, same risk, same regulation' principle.
This approach is intended to balance innovation with regulatory oversight.
Chan outlined key developments, including:
- The issuance of ten licenses for virtual asset trading platforms.
- The authorization of virtual asset spot exchange-traded funds, making Hong Kong the largest market for such ETFs in the Asia-Pacific region.
- Upcoming legislation on stablecoin regulation, with the licensing regime expected to launch within 2025.
The government also plans consultations on licensing regimes for over-the-counter trading services and custodian services for virtual assets.
Chan emphasized that these measures aim to create a comprehensive regulatory structure.
Chan referenced Project Ensemble, a sandbox initiative led by the Hong Kong Monetary Authority, which allows innovators to test tokenized real-world asset use cases with early regulatory feedback.
Later in 2025, the government is expected to issue a second policy statement on virtual asset development.
The upcoming document will address how Web3 can support traditional financial services and the real economy while enhancing digital asset applications.
Chan also discussed the convergence of Web3 and artificial intelligence, citing their combined potential to improve credit assessments, streamline healthcare data, and enhance digital experiences in sectors such as gaming and logistics.
He emphasized the need for responsible development of technologies and called for global cooperation to address challenges such as algorithmic bias, cybersecurity, and the misuse of AI. Chan reiterated Hong Kong’s commitment to working with international stakeholders to support the sustainable growth of the Web3 ecosystem.
Chan highlighted the growing institutional adoption of Web3 technologies, noting that banks, asset managers, and brokers are increasingly incorporating digital assets into their offerings.
He pointed to blockchain’s role in improving transaction efficiency, reducing costs, and increasing market transparency.
Hong Kong’s regulatory framework for virtual assets, introduced over two years ago, follows a 'same activity, same risk, same regulation' principle.
This approach is intended to balance innovation with regulatory oversight.
Chan outlined key developments, including:
- The issuance of ten licenses for virtual asset trading platforms.
- The authorization of virtual asset spot exchange-traded funds, making Hong Kong the largest market for such ETFs in the Asia-Pacific region.
- Upcoming legislation on stablecoin regulation, with the licensing regime expected to launch within 2025.
The government also plans consultations on licensing regimes for over-the-counter trading services and custodian services for virtual assets.
Chan emphasized that these measures aim to create a comprehensive regulatory structure.
Chan referenced Project Ensemble, a sandbox initiative led by the Hong Kong Monetary Authority, which allows innovators to test tokenized real-world asset use cases with early regulatory feedback.
Later in 2025, the government is expected to issue a second policy statement on virtual asset development.
The upcoming document will address how Web3 can support traditional financial services and the real economy while enhancing digital asset applications.
Chan also discussed the convergence of Web3 and artificial intelligence, citing their combined potential to improve credit assessments, streamline healthcare data, and enhance digital experiences in sectors such as gaming and logistics.
He emphasized the need for responsible development of technologies and called for global cooperation to address challenges such as algorithmic bias, cybersecurity, and the misuse of AI. Chan reiterated Hong Kong’s commitment to working with international stakeholders to support the sustainable growth of the Web3 ecosystem.
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