Hong Kong's New Chapter in Web3 Development: From Financial Center to Digital Asset Hub

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 flow in its transformation from the Pearl of the Orient to an international financial center. Today, Hong Kong is embarking on a new journey: based on Web3 technology and with digital assets at its financial core, it aims to redefine the connotation of "financial center" with a global perspective and policy advantages.

Hong Kong's Web3 journey is not just an industrial upgrade, but also an extension of the country's "leading high-quality development with technological innovation" strategy, representing a historic leap in the deep integration of technological revolution and financial civilization. From establishing a financial free port, 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" 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 not only strengthens regulation but also undergoes a comprehensive upgrade around the "LEAP" strategic framework. LEAP stands for Legal (compliance), Expanding (asset tokenization expansion), Advancing (application scenario expansion), and People (talent development), reflecting Hong Kong's comprehensive layout and long-term planning in the field of digital assets.

Key policy highlights include:

1. Clarify stablecoin regulation, with the stablecoin licensing system officially implemented on August 1, 2025.
2. Focus on tokenizing RWA as a key industry, promote the normalization of bond issuance, and plan to include gold, green energy, and electric vehicle assets in the scope of tokenization.
3. Tokenized ETFs and digital asset funds enjoy exemptions from stamp duty and capital gains tax.
4. The number of digital asset trading platform licenses has increased to 11, gradually opening up derivative and leveraged financing channels.
5. Promote talent development, the Cyberport Innovation Fund collaborates with universities to establish a Web3 talent ecosystem.

These policies reflect Hong Kong's high confidence in the compatibility and openness of its financial system, and they also represent a strategic choice to position Hong Kong as a "stronghold" in international financial competition.

Technical Habitat, Capital Gateway, New Boundaries of Trust

The development of Web3 is not just a technological iteration, but a fundamental reshaping of the paradigms of efficiency and trust. In an era where the world is filled with anticipation for a new generation of financial infrastructure, Hong Kong has chosen a path that balances pragmatism and vision.

The "technology habitat" not only refers to the landing experiments of underlying technologies such as blockchain in Hong Kong, but also the joint empowerment of regulatory systems and financial scenarios, allowing technology to truly move beyond the conceptual stage. Currently, mechanisms for on-chain asset issuance, clearing, identity verification, and more have blossomed in multiple locations in Hong Kong, becoming public products in reality.

"Capital Corridor" not only reflects Hong Kong's role as a hub for offshore renminbi and global capital market flows but also its ability to bridge the systemic barriers between traditional finance and Web3. An industry insider commented: "In Hong Kong, digital assets can finally be combined and allocated like traditional financial products."

"Trust New Frontier" is being built through laws, technology, and systems. The immutability of on-chain transaction records, the verifiability of the audit mechanism, and the collaborative 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. Recently, a certain trading platform partnered with traditional financial institutions to launch Hong Kong's first on-chain securities product, with the first day's trading volume exceeding 200 million HKD. The comprehensive account service launched by the platform covers 90% of licensed brokers in Hong Kong, significantly lowering the threshold for institutional participation.

The Position of Hong Kong in the New Global Order

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

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

1. The circulation efficiency of on-chain assets has significantly improved, with settlement time reduced from the traditional T+2 to seconds, and transaction costs decreased by over 80%.
2. The global fiat currency system continues to be under pressure, with the average number of interest rate hikes by major central banks worldwide reaching a recent high in 2024, driving the institutional demand for stablecoins as "technology-based currency."
3. The integration of artificial intelligence and blockchain is profoundly changing the underlying structure of finance, creating a new framework of trust.
4. The financial cognitive structure of the younger generation is changing, with trust beginning to shift from traditional institutions to on-chain consensus mechanisms.

The innovative policy space provided by Hong Kong, built on the trust accumulated as an international financial center, is accelerating its transformation into a global digital asset hub with Web3 Policy 2.0 as the engine. Hong Kong's role is no longer just a "regulatory testing ground," but a gathering port for global Web3 strategic resources, a two-way channel linking traditional finance and decentralized finance (DeFi) in Asia, and a regulatory coordinate for the compliance implementation of RWA and stablecoins.

In an era where on-chain efficiency is continuously improving and the institutionalization of digital assets is on the rise, Hong Kong should inevitably play a leading role in the new global financial order.

Conclusion: Hong Kong's New Decade of Web3

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