A New Chapter in Hong Kong's Web3 Development: Strategic Positioning in the Digital Asset Era

On July 1, 2025, Hong Kong will have returned to the embrace of the motherland for 28 years. From the former Pearl of the Orient to today’s international financial center, this city has always been at the forefront of global institutional intersections and capital flows. Now, Hong Kong is embarking on a new journey: using Web3 as the technological foundation and digital assets as the financial core, and leveraging its global perspective and policy advantages to redefine the connotation of "financial center."

Hong Kong's Web3 journey is not just an industrial upgrade, but an extension of the country's strategy of "leading high-quality development through technological innovation," marking a historic leap in the deep integration of technological revolution and financial civilization.

From the initial establishment of the financial freeport, 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" (Policy Declaration 2.0) in 2025, this city has consistently responded to the uncertainties of the industry with policy certainty.

The Policy Declaration 2.0 is not just about strengthening regulation, but also a systematic upgrade around the "LEAP" strategic framework. LEAP represents four key dimensions: Legal (regulatory 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 digital asset field.

The main content includes:

1. Clearly define the regulation of stablecoins, with the stablecoin licensing system officially implemented on August 1, 2025, setting a global precedent.

2. Focus on the tokenization of RWA as a key industry, promote the normalization of bond issuance, and plan to include assets such as gold, green energy, and electric vehicles in the scope of tokenization.

3. Tokenized ETFs and digital asset funds enjoy exemptions from stamp duty and capital gains tax, further enhancing tax competitiveness.

4. The number of digital asset trading platform licenses has increased to 11, gradually opening up channels for derivatives and leveraged financing.

5. Promote talent development, the Cyberport Innovation Fund collaborates with universities to establish a Web3 talent ecosystem.

These measures reflect Hong Kong's high confidence in the compatibility and openness of its financial system, and are a strategic choice to position Hong Kong as a "stronghold" in the international financial game.

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 the face of global anticipation and anxiety towards the new generation of financial infrastructure, Hong Kong has chosen a pragmatic and visionary path.

The "technical habitat" not only refers to the landing experiment of underlying technologies such as blockchain in Hong Kong but also signifies the empowerment of regulatory systems and financial scenarios, enabling it to truly step out of the ivory tower of "code" and "white papers". Today, mechanisms such as digital asset issuance, on-chain clearing, and on-chain identity verification have blossomed in multiple locations in Hong Kong, becoming public goods in reality.

"Capital corridor" means that Hong Kong not only continues to play its role as a hub for offshore RMB and global capital markets, but also enables the integration of traditional finance with Web3 systems that were "previously disconnected." As a head of a family office stated: "In Hong Kong, digital assets can finally be allocated in combination like funds and bonds."

"Trust New Boundaries" is not an abstract concept, but a reality being jointly constructed by law, technology, and systems. The immutability of on-chain transaction records, the verifiability of audit mechanisms, and the collaborative advancement of KYC and AML frameworks have rebuilt a trust system in Web3 that can be recognized by institutions. To some extent, Hong Kong has transformed "compliance" from a constraint into an accelerator.

In this innovative practice, Hong Kong has emerged with a number of leading enterprises that actively participate in and lead industry transformation. A well-known company has launched Hong Kong's first on-chain securities product in collaboration with traditional financial institutions, with a trading volume exceeding 200 million HKD on the first day. The comprehensive account service offered by its licensed virtual asset exchange covers 90% of licensed brokers in Hong Kong, significantly lowering the participation threshold for institutions.

The "Hong Kong Question" in the New Global Order

Against the backdrop of the renewed game between the US dollar system and technological capital, China urgently 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 standing at the intersection of this global reshaping.

The emergence of Web3 policies is not a coincidence, but an inevitable result of the choices of the times, backed by profound economic and technological logic.

1. Although the capital market has not yet migrated to the blockchain on a large scale, the circulation efficiency of on-chain assets has significantly improved. For example, on-chain settlement time has been reduced from the traditional T+2 to seconds, and transaction costs have decreased by more than 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 the highest level in recent years in 2024, further driving the institutional demand for stablecoins as "tech-based currencies."

3. The integration of artificial intelligence and blockchain is profoundly changing the underlying structure of finance, with on-chain credit, on-chain identity, and on-chain transaction logic constructing a brand new trust framework.

4. The financial cognitive structure of the younger generation is undergoing a transformation, with trust shifting from licensed institutions to on-chain consensus mechanisms, driving the rapid growth of a new financial system.

In this context, the policy innovation space provided by Hong Kong, which accumulates the cornerstone of trust as an international financial center and uses Web3 policy 2.0 as an engine, is accelerating its transformation into a global digital asset hub.

Hong Kong's role is no longer just a "regulatory sandbox," but a gathering hub for global Web3 strategic resources, a two-way channel in Asia linking traditional finance and decentralized finance (DeFi), and a institutional coordinate for the compliant landing of RWA and stablecoins.

It can be said that 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: The era has chosen Hong Kong, and Hong Kong has chosen Web3

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