A New Chapter for Web3 in Hong Kong: Opening a New Era of Digital Assets

On July 1, 2025, Hong Kong will celebrate the 28th anniversary of its return. This city has always been at the forefront of global institutional convergence and capital flows, and is now embarking on a new chapter: redefining the connotation of "financial center" with Web3 as the technological foundation, digital assets as the financial core, and a global perspective and policy advantages.

Hong Kong's Web3 journey is not only an industrial upgrade but also an extension of the national high-quality development strategy, representing a historic leap in the deep integration of technological revolution and financial civilization. From the establishment of the financial free port to the release of the virtual asset policy declaration in 2022, and then to the "Hong Kong Digital Asset Development Policy Declaration 2.0" in 2025 (Policy Declaration 2.0), Hong Kong has consistently responded to the uncertainties of the industry with policy certainty.

The Policy Declaration 2.0 focuses on institutional upgrades around the "LEAP" strategic framework, including four key dimensions: legal compliance, asset tokenization expansion, application scenario expansion, and talent development, reflecting Hong Kong's comprehensive layout and long-term planning in the digital asset field. The main content includes:

1. Clarify the regulation of stablecoins, with the stablecoin licensing system officially implemented on August 1, 2025.
2. Focus on the tokenization of RWA, promote the normalization of bond issuance, and plan to include gold, green energy, and electric vehicle assets within the scope of tokenization.
3. Tokenized ETFs and digital asset funds enjoy tax benefits, enhancing tax competitiveness.
4. The number of digital asset trading platform licenses has increased to 11, gradually opening up channels for derivatives and leveraged financing.
5. Promote talent development and establish a Web3 talent ecosystem.

These policies reflect Hong Kong's high confidence in the compatibility and openness of its financial system, as well as its strategic choice to serve as a "fortress" in international financial competition.

A New Pattern of Technology, Capital, and Trust

The development of Web3 is not only a technological update but also a fundamental reshaping of the paradigms of efficiency and trust. Hong Kong has chosen a pragmatic and visionary path, avoiding both blind chasing of trends and stagnation.

As a "technology habitat", Hong Kong not only provides a testing ground for underlying technologies such as blockchain, but also enables these technologies to truly step out of the ivory tower through regulatory systems and financial scenarios. Mechanisms for on-chain asset issuance, clearing, and identity verification have blossomed in multiple locations in Hong Kong, becoming public products in reality.

As a "capital gateway", Hong Kong not only continues to serve as a hub for the offshore renminbi and global capital markets, but also integrates traditional finance with Web3. Digital assets can now be configured in a portfolio just like traditional financial products.

"Trust New Frontier" becomes a reality through the joint construction of law, technology, and systems. The immutability of on-chain transaction records, the verifiability of auditing mechanisms, and the coordinated advancement of KYC and AML frameworks have rebuilt a trust system recognized by institutions for Web3.

In this innovative practice, a group of leading enterprises actively participated and led the industrial transformation. A certain trading platform collaborated with traditional financial institutions to launch Hong Kong's first on-chain securities product, with the first-day trading volume exceeding 200 million HKD. The comprehensive account services it launched cover 90% of licensed brokers in Hong Kong, greatly lowering the participation threshold for institutions.

Hong Kong's Position in the New Global Order

Against the backdrop of a renewed game between the US dollar system and technological capital, China needs a new financial space that connects global resources, promotes the evolution of digital asset systems, and undertakes pilot missions. Hong Kong is standing at the intersection of this reshaping of the global landscape.

The introduction of Web3 policies is an inevitable result of the choices of the times, supported by profound economic and technological logic behind it:

1. The efficiency of on-chain asset circulation has significantly improved, with settlement time reduced from T+2 to seconds, and transaction costs lowered by over 80%.
2. The global fiat currency system continues to be under pressure, driving the institutional demand for stablecoins as "technology-based currencies."
3. The integration of artificial intelligence and blockchain is transforming the underlying structure of finance, creating a new framework of trust.
4. The financial cognitive structure of the younger generation is undergoing a transformation, with trust shifting from licensed institutions to on-chain consensus mechanisms.

Against this backdrop, Hong Kong is accelerating its transformation into a global digital asset hub. It is not only a "regulatory sandbox" but also a gathering port for global Web3 strategic resources, a two-way channel linking traditional finance and decentralized finance in Asia, and a institutional coordinate for the compliant implementation of RWA and stablecoins.

Conclusion: The New Decade of Web3 in Hong Kong

The year 2025 is a critical juncture for Hong Kong to restart with digital sovereignty and institutional innovation. Web3 is not only a technological revolution but also a strategic anchor point for Hong Kong in global governance, financial competition, and the restructuring of technological paradigms. We are witnessing a new decade of digital economy belonging to Hong Kong, China, and even the world.