Connect with us


HK’s Under Secretary & Chainlink co-founder discuss Web3 & digital assets in Hong Kong



At SmartCon 2023, Mr. Joseph Chan, the Under Secretary for Financial Services and the Treasury in the Government of Hong Kong SAR, and Chainlink Co-Founder Sergey Nazarov engaged in a discussion about Hong Kong’s prominent role in global financial markets and its efforts to promote the adoption of digital assets.

During the conversation, Joseph shared valuable insights into Hong Kong’s illustrious history as a financial hub, which has positioned the region at the forefront of global finance. 

He highlighted impressive statistics, such as the successful raising of over 100 billion Hong Kong dollars for IPOs in the previous year, solidifying Hong Kong’s position as the fourth-largest equity market globally, trailing only Shanghai, Shenzhen, and NASDAQ.

Hong Kong and Web3

According to him, the Web3 ecosystem is being embraced by the region due to its potential in addressing data monopolies, privacy concerns, and algorithmic discrimination. 

In October 2022, the Hong Kong government published a policy statement outlining its vision, approach, and steps to promote sustainable and responsible development of the virtual asset sector.

Hong Kong’s commitment to embracing Web3 is further demonstrated through its proactive regulation of virtual asset trading activities. In June of this year, a new licensing regime for virtual asset service providers was implemented, aligning the requirements for virtual asset exchanges with anti-money laundering and investor protection standards applicable to traditional financial institutions.

To foster the growth of Web3, Hong Kong has allocated 50 million Hong Kong dollars towards expediting the Web3 ecosystem, with a focus on business collaboration and frontier development. 

Additionally, a dedicated task force has been established to promote Web3 development, highlighting the government’s commitment to this transformation.

Bond market

It comes as no surprise that the nation holds the distinction of being the largest issuer of international bonds for seven consecutive years, showcasing its dominance in the Asian bond market. 

Furthermore, Hong Kong’s significance as a wealth and asset management center is evident, with assets under management (AUM) reaching 4 trillion Hong Kong dollars—a remarkable 30% growth over four years. Additionally, the region claims the top spot in Asia for insurance density, solidifying its status as a crossroads for wealth.

Mr. Chan attributes Hong Kong’s success to its fundamental strengths. These include a free flow of capital, compatibility with the Hong Kong dollar, a common law legal system, and its strategic location at the heart of Asia. 

With its proximity to other major Asian hubs like Beijing and Singapore, as well as professional access to mainland markets, Hong Kong is ideally positioned to foster both traditional and digital finance.

Additionally, Hong Kong has introduced a 30 billion Hong Kong dollar co-investment fund managed by the Hong Kong Investment Corporation. This initiative aims to boost high-tech finance and innovation, thereby driving economic growth.

Gateway to China

Sergey Nazarov, Co-Founder of Chainlink, talked about Hong Kong’s unique position as a gateway to China, where vast capital flows through the city, offering ample opportunities for digital asset adoption.

He praised Hong Kong’s distinctive legal and financial environment, allowing both the issuance of digital assets by banks and private entities, and commended the region’s commitment to creating clear standards that enable the efficient and legally accepted use of digital assets.

Read also; SmartCon 2023: How DECO protocol improves data access and privacy

0 0 votes
Article Rating
Click to comment
0 0 votes
Article Rating
Notify of

Inline Feedbacks
View all comments

Crypto News Update

Latest Episode on Inside Blockchain

Crypto Street



ALL Sections

Recent Posts

Would love your thoughts, please comment.x