A New Chapter for Web3 in Hong Kong: Moving Towards the Next Decade of the Digital Economy

On July 1, 2025, Hong Kong will celebrate the 28th anniversary of its return. This city has transformed from the Pearl of the Orient to an international financial center, always at the forefront of global institutional convergence and capital flow. Today, Hong Kong is embarking on a new journey: based on Web3 technology, with digital assets as the financial core, leveraging its global perspective and policy advantages to redefine the connotation of "financial center."

Hong Kong's Web3 journey is not just an industrial upgrade, but also an extension of the national strategy of "leading high-quality development through technological innovation." It represents a historic leap in the deep integration of technological revolution and financial civilization.

From the establishment of the financial freeport, to the release of the virtual asset policy declaration in 2022, and then to the launch of the "Hong Kong Digital Asset Development Policy Declaration 2.0" (Policy Declaration 2.0) in 2025, Hong Kong has consistently used policy certainty to address industry uncertainties.

The Policy Declaration 2.0 not only strengthens regulation but also carries out institutional upgrades around the "LEAP" strategic framework: Legal compliance, Expanding asset tokenization, Advancing application scenarios, and People development, reflecting Hong Kong's comprehensive layout and long-term planning in the digital asset field.

The main measures include:

• The stablecoin licensing system will be officially implemented on August 1, 2025, creating a global precedent.
• Focus on the tokenization of RWA, promote the normalization of bond issuance, and plan to include gold, green energy, and electric vehicle assets in the tokenization scope.
• Tokenized ETFs and digital asset funds enjoy exemptions from stamp duty and capital gains tax, enhancing tax competitiveness.
• The number of digital asset trading platform licenses has increased to 11, gradually opening up channels for derivatives and leveraged financing.
• Promote talent development and jointly establish a Web3 talent ecosystem with universities.

These measures reflect Hong Kong's high confidence in the compatibility and openness of its financial system, and are a strategic choice to position Hong Kong as a "stronghold" in the international financial game.

Technical Habitat, Capital Gateway, New Boundaries of Trust

The development of Web3 is not only a technological change but also a fundamental reshaping of the paradigms of efficiency and trust. In the face of global expectations and anxieties regarding a new generation of financial infrastructure, Hong Kong has chosen a path that balances pragmatism and foresight.

The "technological ecosystem" refers not only to the practical trials of underlying technologies such as blockchain in Hong Kong but also to the joint empowerment of regulatory systems and financial scenarios, enabling technology to truly step out of the ivory towers of "code" and "white papers." Today, mechanisms for on-chain asset issuance, clearing, identity verification, and more are flourishing in multiple locations in Hong Kong, becoming public goods in reality.

The "Capital Channel" not only reflects Hong Kong's role as the central hub for the flow of offshore RMB and global capital markets, but also its ability to bridge the traditionally disconnected systems of traditional finance and Web3. As a head of a family office stated: "In Hong Kong, digital assets can finally be allocated in a portfolio just like funds and bonds."

"Trusting New Frontiers" is not an abstract concept, but a reality being constructed by law, technology, and systems together. The immutability of on-chain transaction records, verifiable auditing mechanisms, and the collaborative advancement of KYC and AML frameworks have rebuilt a trust system in Web3 that can be recognized by institutions. To some extent, Hong Kong has transformed "compliance" from a constraint into an accelerator.

In this innovative practice, a group of leading companies actively participated and led industrial transformation. For example, a digital asset company collaborated with traditional financial institutions to launch Hong Kong's first on-chain securities product, with a trading volume exceeding HKD 200 million on its first day. The comprehensive account service launched by its licensed virtual asset exchange covers 90% of licensed brokers in Hong Kong, significantly lowering the participation threshold for institutions.

The "Hong Kong Question" in the New Global Order

In the context of the renewed game between the US dollar system and technological capital, China needs a new financial space that can connect global resources, promote the evolution of digital asset systems, and undertake pilot missions. Hong Kong is steadily positioned at the intersection of this global reshaping.

The emergence of Web3 policies is not a coincidence, but an inevitable result of the choices of the times, supported by profound economic and technological logic behind it:

• Although the capital markets have not yet migrated en masse to on-chain, the circulation efficiency of on-chain assets has significantly improved. For example, the settlement time on-chain has decreased from the traditional T+2 to seconds, and transaction costs have dropped by over 80%.

• The global fiat currency system continues to face pressure, with the average number of interest rate hikes by major central banks worldwide in 2024 reaching its highest level in recent years, further driving the institutional demand for stablecoins as "tech-based currencies."

• The integration of artificial intelligence and blockchain is profoundly changing the underlying structure of finance, with on-chain credit, identity, and transaction logic constructing a brand new trust framework.

• The financial cognitive structure of the younger generation is undergoing a transformation, with trust shifting from licensed institutions to on-chain consensus mechanisms, driving the rapid growth of a new financial system.

Against this backdrop, the policy innovation space provided by Hong Kong, built on the trust accumulated as an international financial center and powered by Web3 policy 2.0, is accelerating its transformation into a global digital asset hub.

Hong Kong's role is no longer just a "regulatory sandbox"; it has become a global hub for Web3 strategic resources, a two-way channel in Asia linking traditional finance with decentralized finance (DeFi), and a regulatory framework for the compliance of RWA and stablecoins.

In an era where on-chain efficiency is continuously improving and the trend of institutionalizing digital assets is emerging, Hong Kong is destined to play a leading role in the global new financial order.

Conclusion: The era has chosen Hong Kong, and Hong Kong has chosen Web3

2025 is a key turning point for Hong Kong to embark on a new journey with digital sovereignty and institutional innovation. Web3 is not only a technological revolution but also a strategic anchor for Hong Kong to actively find its place in global governance, financial competition, and the reconstruction of technological paradigms. We are witnessing a new decade of the digital economy that belongs to Hong Kong, China, and even the world.