Under the background of Hong Kong’s encryption new policy, has the positive signal of industry development been released? Open retail investors to enter the market, and what new opportunities will it bring to Web3 Builder? Can the Web3 industry find a breakthrough to dispel the shadow of the bear market in an open and win-win manner with the help of Hong Kong’s new encryption policy? In fact,The announcement of the Hong Kong Encryption New Policy has opened a new chapter for the supervision of the encryption market, and a more standardized and freer encryption trading environment may be coming.

wonderful point of view

wonderful point of view

• Hong Kong's encryption policy is still in the "experimental field" stage, and it is necessary to explore industry regulatory rules for a long time

• The implementation cycle of the stablecoin regulatory policy is long: the primary principle is to balance the development interests of the industry

• Opening up to retail investors will lead to significantly enhanced market participation and liquidity

• first level title

Encryption New Deal Releases Positive Signals, Stablecoin Regulation Balances the Interests of All Parties

On June 1, the "Guidelines Applicable to Operators of Virtual Asset Trading Platforms" issued by the Hong Kong Securities Regulatory Commission (SFC) came into effect. The release of new encryption regulatory policies has brought new hope to investors who are concerned about the encryption industry, and a more standardized and transparent encryption asset trading order may be established. However, in the face of the introduction of the new policy, Mr. Xiaosong believes that from the perspective of the development of the overall encryption market, there is not much difference between Hong Kong and Singapore, the United States and other places, and there is no systematic encryption regulatory policy document. Encryption policies in Hong Kong need to consider the development interests of the industry in mainland China, just as the mainland is also using Hong Kong as a "testing field" for industry regulation.At present, the encryption regulatory policies issued by Hong Kong are still in the state of "crossing the river by feeling the stones". Only by taking one step at a time can we explore encryption regulations that are suitable for the development trend of the industry.

In this regard, Mr. Alma affirmed the positive signal released by Hong Kong’s new policy on encryption regulation. Since 2017, Hong Kong has always maintained an open and inclusive attitude towards the policy supervision of the encryption industry. Since the Hong Kong government issued a declaration at the end of October last year, Hong Kong has adopted a series of measures to boost the development of the encryption market, and many policy details for the supervision of exchanges are following the trend. At the same time, Hong Kong's issuance of VSP licenses for virtual asset trading licenses is not only an innovative move, but also a performance at the forefront of supervision. Mr. Alma hopes that friends who are interested in the Web3 industry, or who have been in this industry for many years, can look forward to the future of Hong Kong. In addition to the "Guidelines Applicable to Operators of Virtual Asset Trading Platforms", the regulatory arrangements for stablecoins are also an important part of Hong Kong's new encryption policy.

In January 2023, the Hong Kong Monetary Authority released a summary of the stablecoin discussion paper, stating that stablecoin regulatory arrangements are expected to be implemented in 2023/2024. On May 18, the Hong Kong Monetary Authority announced the launch of the "Cyber ​​Hong Kong Dollar" pilot program. A total of 16 companies from the financial, payment and technology industries were selected to participate in the first round of trials in 2023. The pilot project deeply studies six types of potential use cases, including comprehensive payment, programmable payment, offline payment, token deposit, Web3 transaction settlement and token asset settlement.

"In fact, the discussion paper on stablecoins has been launched since 2022. The reason why it takes such a long time to formulate regulatory policies is that stablecoins not only have an impact on the entire industry ecology, but also have an impact on the entire financial system and the general environment." It has an impact," Teacher Alma analyzed. In the process of implementing regulatory documents related to stablecoins, the Hong Kong Supervisory Authority needs to balance the interests of all parties, such as payment software, communication tools, banking and so on.first level title

Open retail investors to enter the market, bringing together industry-leading investment forces

As a highland of technology and finance, Hong Kong has always been favored by investors from all walks of life. Many investors from home and abroad have come to Hong Kong to seek cooperation opportunities, and they have also found a way forward in the process of communicating with all parties. In the new policy, the Hong Kong Securities Regulatory Commission allows retail investors to use licensed virtual asset trading platforms. This decision also excited the guests and teachers in the live broadcast room, and they all imagined the future of Web3 investment.

"Opening retail investors will definitely attract more investors to enter the market, including institutional investors. At the same time, institutional investors are still relatively cautious and pay attention to risk management and compliance considerations, so some investors may wait for the market to Mature and stable, enter the market after the regulatory agency is more complete and the regulatory framework is more comprehensive”, Mr. Suki said with confidence in the investment market. With the gradual maturity of the Hong Kong encryption market and the improvement of regulatory measures, the interest of institutional investors will gradually increase, which in itself can stimulate market vitality.There are many real Web3 Builders in Hong Kong, and we can expect more investors to find their new world.

first level title

The exploration of Web3 projects under the New Deal revitalizes the innovation vitality of Bulider

Facing the promulgation of the Encryption New Deal, it is necessary to think about the further development plan of the project in addition to surprises. The guest teachers in the live broadcast room shared their new phased plans based on their own project positioning and goals. Mr. Xiaosong said that although he is not a professional Web3 entrepreneur, he will pay attention to the construction of DAO ecology in accordance with the local laws and regulations. "We are considering doing some explorations in the direction of standard DAO under the background of Hong Kong's New Deal."

Mr. Suki and his partners jointly launched the Hong Kong Web3 Innovation Investment Foundation, hoping to discover and invest in early Web3 projects that provide better infrastructure and user experience with leading industry institutions and investors around the world. In addition, Mr. Suki also mentioned that the team is about to start the Web3 Global Acceleration Program and open up external fundraising activities.

first level title

The new direction of future supervision: it is imperative to open up the mainland and overseas markets

The "Guidelines Applicable to Virtual Asset Trading Platform Operators" may be just a starting point. Hong Kong's encryption policy will usher in new changes in the future, which requires the efforts of everyone who is actively involved in the construction of Web3. When talking about the direction of future supervision in Hong Kong, Mr. Xiaosong outlined three paths: first, the definition and characterization of DAO organizations. At present, there are no scientific and systematic regulatory agencies and regulatory policies related to DAO in the world; second, the introduction of policies to specifically set compliance with state-owned assets, and do a good job in the disposal of encrypted assets; third, to open up barriers to the mainland market. It is worth exploring to truly connect the mainland with Hong Kong on a pilot basis, including the construction of some special zones.

"The direction of Hong Kong's regulation in the future must be based on legality and strong compliance. If Hong Kong can implement policies in these areas, it will drive the entire industry forward, which will benefit the industry, developers, and investors. of", Mr. Suki added. In addition, the guests and teachers present here believe that it is necessary to support localized Web3 projects, welcome international investment projects, and have a more open mind to make Web3 construction enter the fast lane.