7.1 Resonance of the Era | The Next Decade of Web3 in Hong Kong Begins from This Moment

On July 1, 2025, Hong Kong will celebrate the 28th anniversary of its return. From the Pearl of the Orient to an international financial center, this city has always been at the forefront of global institutional convergence and capital flow. Today, Hong Kong is setting off again: using Web3 as the underlying technological paradigm, with digital assets as the financial core, and redefining the connotation of “financial center” with a global perspective and policy advantages.

When we talk about “Hong Kong’s Web3 path”, it is never just an industrial upgrade, but an extension of the national strategy of “leading high-quality development through technological innovation”, a historic leap in the deep integration of technological revolution 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) released in 2025 — this city has consistently responded to industry uncertainty with the certainty of policy.

The Policy Declaration 2.0 is not just about “strengthening regulation”; it is also a systematic upgrade centered around the “LEAP” strategic framework: LEAP refers to four key dimensions - Legal (compliance with laws), Expanding (tokenization of assets), Advancing (expansion of application scenarios), and People (talent development), reflecting Hong Kong’s comprehensive layout and long-term planning in the digital asset field.

• Clarify the regulation of stablecoins, with the stablecoin licensing system officially implemented on August 1, 2025, setting a global leading precedent;

• RWA tokenization has been designated as a key industry, promoting the normalization of bond issuance, and plans to include gold, green energy, and electric vehicle assets in the tokenization scope;

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

• The number of digital asset trading platform licenses has increased to 11, and derivatives and leveraged financing channels are gradually being opened up;

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

Behind all this is a high level of confidence in the compatibility and openness of the Hong Kong financial system, and it is also a strategic choice to use Hong Kong as a “bridgehead” in the international financial game.

Technology Habitat, Capital Gateway, Trust New Frontier

The development of Web3 is not only a technological shift, but also a fundamental reconfiguration of the paradigms of efficiency and trust. In an era filled with anxiety and anticipation for the new generation of financial infrastructure, Hong Kong has chosen a pragmatic and visionary path: neither blindly chasing trends nor being stagnant.

The so-called “technology habitat” refers not only to the implementation and testing of underlying technologies such as blockchain in Hong Kong, but also to the empowerment of regulatory systems and financial scenarios, allowing it to truly emerge from the ivory tower of “code” and “white papers.” Today, mechanisms such as on-chain asset issuance, on-chain clearing, and on-chain identity verification have blossomed in multiple areas in Hong Kong, becoming public products in reality rather than isolated technological demonstrations.

The “capital channel” not only signifies Hong Kong’s continued role as a hub for offshore RMB and global capital markets, but also its ability to bridge the traditionally “disconnected” systems between traditional finance and Web3. A family office executive once remarked, “In Hong Kong, digital assets can finally be allocated in a portfolio like funds and bonds.”

As for “Trust New Frontier”, this is not an abstract concept, but a reality being 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 recognized by institutions for Web3. To some extent, Hong Kong has transformed “compliance” from a constraint into an accelerator.

In this innovative practice, Hong Kong has also seen the emergence of a group of leading enterprises represented by HashKey, actively participating in and leading industrial transformation. Recently, HashKey, in collaboration with traditional financial institution GF Securities, launched Hong Kong’s first on-chain securities product, GF Token, with a trading scale exceeding 200 million HKD on its first day. The licensed virtual asset exchange HashKey Exchange’s Omnibus comprehensive account service covers 90% of licensed brokers in Hong Kong, greatly lowering the participation threshold for institutions.

The “Hong Kong Question” in the Global New Order

Against the backdrop of the re-competition between the US dollar system and technological capital, China urgently needs a new financial space that connects global resources, promotes the evolution of digital asset systems, and undertakes pilot missions. Hong Kong is firmly positioned at the intersection of this global reshaping.

The introduction of Web3 policies is not coincidental, but an inevitable result of the choices of the times, supported by profound economic and technological logic behind it:

• Although the capital markets have not yet migrated on a large scale to the chain, the efficiency of on-chain asset circulation has significantly improved. For example, the on-chain settlement time has been reduced from the traditional T+2 to seconds, and transaction costs have decreased by over 80%;

• The global fiat currency system continues to be under pressure, with the average number of interest rate hikes by major central banks worldwide reaching its highest level in recent years in 2024, further driving the institutional demand for stablecoins as “tech-based currencies”;

• 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 completely new trust framework;

• 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.

Against this backdrop, Hong Kong is accelerating its transformation into a global digital asset hub, leveraging the policy innovation space provided by “one country, two systems,” accumulating a foundation of trust as an international financial center, and using Web3 Policy 2.0 as the engine.

Hong Kong’s role is no longer just a “regulatory sandbox,” but a hub for global Web3 strategic resources, a two-way channel linking traditional finance and decentralized finance (DeFi) in Asia, and a regulatory coordinate for the compliance implementation 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 is bound to play a leading role in the global new financial order.

Conclusion | The era has chosen Hong Kong, and Hong Kong has chosen Web3

2025 is a key node 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 the reconstruction of technological paradigms. We are witnessing a new decade of digital economy belonging to Hong Kong, China, and even the world.