According to the public consultation documents on stablecoins jointly issued by the Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority, Kelvin Guo, co-founder of OneDegree, a Hong Kong digital asset insurance company, stated that stablecoins are crucial for the development of Web3 and can help mainstream investors enter the Web3 and cryptocurrency ecosystem. Stablecoins are supported by legal tender and can be easily converted into legal tender while maintaining value stability, providing investors with flexibility and protection.

Hong Kong's financial regulators have released proposals for a licensing regime and regulatory sandbox to supervise stablecoin issuers and provide guidance on compliance. The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) are seeking feedback on the proposals until Feb. 29. The regime will require issuers who meet certain conditions to obtain a license from the HKMA, and firms looking to issue a fiat-referenced stablecoin in Hong Kong or market stablecoins to the Hong Kong public will need a license to operate. The move is part of Hong Kong's efforts to position itself as a regional crypto hub and follows the implementation of a licensing regime for crypto service providers in June.

Hong Kong Securities and Futures Commission issued a notice stating that public fund products with virtual assets accounting for more than 10% must meet corresponding conditions for their management companies, related investment strategies, and product custody institutions. According to current regulations, generally speaking, institutions holding the Hong Kong Securities and Futures Commission's License No. 9 are not allowed to have virtual assets accounting for more than 10% in their fund portfolios. The latest notice clarifies that if the proportion of virtual assets exceeds (or is expected to exceed) 10%, the management institution must apply to the Hong Kong Securities and Futures Commission for approval before the related products can be sold to Hong Kong investors.

1.The U.S. SEC requires Bitcoin spot ETF issuers to confirm authorized participant information in the next update application

Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority have reviewed the current policies for intermediary institutions wishing to engage in virtual asset related activities. In addition to existing cryptocurrency futures ETFs, the SFC stated that it is "prepared to accept authorization applications for other funds involved in virtual assets, including virtual asset spot trading exchange traded funds (VA spot ETFs)." In another notice released today, the SFC stipulated the requirements for funds to "directly invest in the same spot VA tokens that the Hong Kong public can trade on virtual asset trading platforms (VATPs) licensed by the SFC."

Hong Kong Monetary Authority and Oxford Metrica (OM), an international consulting firm, released a 2023 survey report, pointing out that Hong Kong has become one of the top ten global technology innovation centers outside of Silicon Valley in the United States, and is in a favorable position in developing regional centers for virtual assets, further consolidating Hong Kong's position as a global financial hub. The report suggests that Hong Kong, under the lack of clear regulatory frameworks in other markets, should attract digital and virtual asset companies and investors to develop in Hong Kong by using its own advantages. Looking ahead, the report expects more asset tokenization products to emerge, and the report also states that "now is the appropriate time for Hong Kong to promote the development of the virtual asset market". The Hong Kong Monetary Authority is also studying the regulatory system of stablecoins, with the goal of implementing relevant measures next year.

Paul Chan, Financial Secretary of Hong Kong, stated that the goal of Hong Kong is clear to develop as a hub for the third generation of the internet, Web3.0. Cyberport has already gathered over 210 companies involved in Web3.0, with founders from over 20 countries and regions worldwide, covering a wide range of businesses. Hong Kong released a policy statement on the development of virtual assets in Hong Kong at the end of October last year, and it has been over a year since then. The third-generation internet market is developing rapidly, with some challenges and greater opportunities. Paul Chan also stated that security is a must and development is necessary. In the pattern of winner takes all, driven by the first-mover effect and network effect in the online world, how to seize opportunities in challenges and transform them into new blue oceans is a key question in continuously leading the global Web3.0 market.

Hong Kong's Securities and Futures Commission's (SFC) Process Review Committee released its annual report, pointing out that the SFC took about 2.5 years to process a virtual asset trading platform license application. In order to promote the licensing process and facilitate the development of Hong Kong's financial technology, while maintaining investor protection, the SFC recommends simplifying the licensing process and strengthening market awareness of the new licensing system for virtual asset trading platforms, as well as enhancing industry education on the licensing system.

The Hong Kong Stock Exchange announced that current CEO Charles Li Xiaojia has confirmed that he will not seek re-election after his term ends in May 2024. Current Co-Chief Operating Officer Nicolas Aguzin will become the next CEO of the Hong Kong Stock Exchange for a three-year term, and his appointment has been approved by the Hong Kong Securities and Futures Commission. Another current Co-Chief Operating Officer, Calvin Tai, has been appointed as Deputy CEO of the Hong Kong Stock Exchange Group. It is reported that during Charles Li's tenure, he and Calvin Tai supported the listing of Asia's first batch of cryptocurrency ETFs, including the Southern Dongying Bitcoin Futures ETF, the Southern Dongying Ethereum Futures ETF, and the Samsung Blockchain Technology ETF and Samsung Bitcoin Futures Active ETF.

Tang Yi, the president of the Hong Kong Blockchain Association HKBA.club, stated at the Shenzhen Creative December Smart Valley Digital Art Exhibition that many member units of the Hong Kong Blockchain Association have recently obtained the Hong Kong Securities and Futures Commission's No. 1 license (security token license), No. 7 license (virtual asset trading license), and No. 9 license (virtual asset management license). Hong Kong has financial advantages, and investors are looking for new investment opportunities including financial technology AI Web 3.0. However, Hong Kong lacks research and development talents in Web 3.0 and blockchain, while Shenzhen has made up for this deficiency. Shenzhen and Hong Kong can work together to develop and invest in the emerging industry of Web 3.0 digital cultural scenes.