Hong Kong in the Digital Wave: Opening a New Era of Web3

On July 1, 2025, Hong Kong will celebrate its 28th anniversary of the return. This city has always been at the forefront of global economic development, and it is now moving towards a new milestone: redefining the connotation of "financial center" with Web3 as the core technology and digital assets as the financial hub.

Hong Kong's Web3 journey is not just an industrial upgrade, but an extension of the national strategy of "leading high-quality development through technological innovation," representing a deep integration of technology 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" (Policy Declaration 2.0) in 2025, Hong Kong has consistently responded to the uncertainties in the industry with clear policies.

The Policy Declaration 2.0 undergoes a comprehensive upgrade around the "LEAP" strategic framework: Legal (compliance with laws), Expanding (tokenization of assets), Advancing (expansion of application scenarios), and People (talent development). This reflects Hong Kong's long-term planning and comprehensive layout in the field of digital assets.

Key highlights include:

1. Clear regulation of stablecoins, with the stablecoin licensing system officially implemented on August 1, 2025.
2. RWA tokenization has become a key industry, promoting the normalization of bond issuance and planning to include more assets in the scope of tokenization.
3. Tokenized ETFs and digital asset funds enjoy tax benefits, enhancing competitiveness.
4. The number of digital asset trading platform licenses has increased to 11, gradually opening up derivatives and leveraged financing.
5. Promote talent development and build a Web3 talent ecosystem.

These policies highlight the compatibility and openness of Hong Kong's financial system, and also reflect Hong Kong's strategic position as a "bridgehead" in the international financial game.

The Intersection of Technology, Capital, and Trust

The development of Web3 is not just a technological update, but a reshaping of the paradigms of efficiency and trust. Hong Kong has chosen a pragmatic and visionary path: neither blindly following nor remaining stagnant.

As a "technology habitat", Hong Kong not only provides a testing ground for underlying technologies such as blockchain but also integrates regulatory systems with financial scenarios to enable real-world applications. Mechanisms such as on-chain asset issuance, clearing, and identity authentication have blossomed in multiple locations in Hong Kong, becoming public goods in reality.

As a "capital gateway", Hong Kong not only continues to play a pivotal role in connecting offshore RMB with global capital markets, but also strives to bridge the gap between traditional finance and Web3. Digital assets are gradually achieving seamless integration with traditional financial products.

"Trusting New Frontiers" is becoming a reality through the joint efforts of law, technology, and systems. The immutability of on-chain transactions, verifiable audit mechanisms, and the collaborative advancement of KYC and AML frameworks have rebuilt a trust system recognized by institutions for Web3.

In this innovative practice, a number of leading enterprises actively participated and led industrial transformation. For example, a certain 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 services launched by its licensed virtual asset exchange cover 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 a re-negotiation between the 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 global restructuring.

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

1. The efficiency of on-chain asset circulation has significantly improved, with settlement time reduced from T+2 to seconds, and transaction costs decreased by over 80%.
2. The global fiat currency system continues to face pressure, driving the institutional demand for stablecoins as "tech-based currencies."
3. The integration of artificial intelligence and blockchain is changing the underlying structure of finance, creating a new trust framework.
4. The financial cognitive structure shift of the younger generation drives the rapid growth of the new financial system.

Against this backdrop, the policy innovation space offered by Hong Kong, built on the trust accumulated as an international financial center and driven 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 testing ground"; it has become a gathering port for global Web3 strategic resources, a two-way channel connecting traditional finance and decentralized finance (DeFi) in Asia, and a regulatory coordinate for the compliant implementation 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 expected to play a leading role in the new global financial order.

Conclusion: The Future of Web3 in Hong Kong

2025 is a key turning point for Hong Kong to start anew with digital sovereignty and institutional innovation. Web3 is not only a technological revolution but also a strategic fulcrum for Hong Kong to find its position in global governance, financial competition, and the reconstruction of technological paradigms. We are witnessing the beginning of a new decade of the digital economy belonging to Hong Kong, China, and even the world.