This article addresses five questions raised by community members, providing detailed answers about the current status and trends in cryptocurrency trading, Web3 policies, the entrepreneurial environment, the over-the-counter (OTC) market, and future development directions in Hong Kong, helping readers gain a comprehensive understanding of the opportunities and challenges Hong Kong faces as an important Web3 hub in Asia.
Community members asked several questions about Web3 in Hong Kong, and I will answer them here.
- Is it legal to trade cryptocurrencies in Hong Kong?
In Hong Kong, trading cryptocurrencies is legal. However, you need to trade on licensed platforms. The SFC has strict regulations for these platforms, requiring them to hold licenses and comply with regulations. Currently, two platforms have obtained SFC licenses: HashKey and OSL, and trading on these two platforms is legal and compliant.
- What is the Web3 policy like in Hong Kong?
The Hong Kong government is quite supportive of the development of Web3. In October 2022, Hong Kong released a policy declaration regarding virtual assets, clearly stating its support for the development of virtual assets and Web3 technologies. However, the government also put forward some requirements, such as that development should proceed under the premise of being "stable, sustainable, and responsible."
The Hong Kong Monetary Authority (HKMA) and the SFC have established a "Fintech Innovation Sandbox." This sandbox mechanism acts like a safe testing area, allowing Web3 projects to conduct innovative testing in a controlled environment. Companies can try out new technologies here without worrying too much about regulatory risks, providing a great opportunity for promoting new technologies.
- How is the entrepreneurial environment for Web3 in Hong Kong?
The entrepreneurial environment for Web3 in Hong Kong is becoming increasingly active. The government provides policy support, attracting many Web3 companies and talents. Moreover, Hong Kong's financial infrastructure and legal system are relatively well-developed, providing good conditions for entrepreneurs. However, entrepreneurs also face some challenges here, such as a shortage of technical talent and high market competition pressure.
- What is the situation of OTC (over-the-counter) trading in Hong Kong?
The OTC market in Hong Kong is actually quite active. According to law enforcement statistics, there are approximately 200 physical virtual asset OTC shops in Hong Kong, as well as about 250 online virtual asset trading service providers. However, to improve the security and transparency of transactions, the government plans to gradually bring the OTC market under regulatory oversight.
- What is the development direction of Web3 in Hong Kong?
As global Web3 technology develops rapidly, Hong Kong is actively positioning itself as a Web3 and virtual asset center in Asia and even globally. In the future, it is expected that Hong Kong will continue to improve the regulatory framework for Web3, attracting more companies, investors, and developers to join the Web3 ecosystem. As a potential center for Web3, Hong Kong will promote the application of Web3 technology in finance, art, entertainment, and other fields, contributing to the rise of the digital economy.
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