Hong Kong Monetary Authority Chan Ka chi: Hong Kong needs to establish an appropriate regulatory system to support the sustainable and responsible development of virtual assets, including stable currencies

According to reports, at the Web3 Hong Kong Carnival Summit held today, Chen Jiaqi, Assistant President of the Hong Kong Monetary Authority (Currency Management), stated in his keynote speech that we not only shoulder the role of regulator of the virtual asset industry, but also actively promote the development of the industry. We hope to work together in an open, mutually beneficial and win-win manner to promote the development of Web3. Innovation should benefit everyone, from cryptocurrency native enterprises, innovative enterprises, and end users. Therefore, while unleashing the potential of Web3, corresponding regulations must also be supplemented to mitigate risks.

Hong Kong Monetary Authority Chan Ka chi: Hong Kong needs to establish an appropriate regulatory system to support the sustainable and responsible development of virtual assets, including stable currencies

I. Introduction
A. Explanation of Web3
B. Brief overview of the Hong Kong Monetary Authority (HKMA)
C. Purpose of the article
II. Background on Virtual Asset Industry
A. Definition of virtual assets
B. Brief history of virtual assets
III. Role of HKMA in the Virtual Asset Industry
A. HKMA’s position as regulator
B. HKMA’s promotion of the industry
IV. Importance of Open Collaboration
A. Benefits of open collaboration
B. HKMA’s stance on open collaboration
V. The Need for Corresponding Regulations
A. Risks associated with virtual assets
B. HKMA’s approach to mitigating risks
VI. Conclusion
A. Recap of HKMA’s role in promoting Web3’s development
B. Future outlook on virtual asset industry
VII. FAQs
A. What is Web3?
B. How does HKMA regulate the virtual asset industry?
C. What risks are associated with virtual assets?
# According to Hong Kong Monetary Authority, Collaboration and Regulation Are Keys to Promoting Web3
Web3, the next stage of the World Wide Web, is a decentralized, open-source network that aims to provide a more transparent and secure internet through a combination of blockchain, peer-to-peer networking, and cryptography. At the Web3 Hong Kong Carnival Summit held on [insert date], Chen Jiaqi, Assistant President of the Hong Kong Monetary Authority (HKMA) (Currency Management), highlighted HKMA’s role in the virtual asset industry and emphasized the importance of open collaboration and corresponding regulation to promote Web3’s development.

Background on Virtual Asset Industry

Virtual assets, also known as cryptocurrencies or digital assets, are digital forms of value that operate independently of central banking systems. Bitcoin is the most popular and widely known virtual asset, but there are now thousands of different cryptocurrencies in circulation. The virtual asset industry started in 2009 with the creation of Bitcoin, and since then, it has grown significantly.

Role of HKMA in the Virtual Asset Industry

As a regulatory body, HKMA’s role in the virtual asset industry is to mitigate risks and safeguard the interests of stakeholders. HKMA has established a licensing regime for virtual asset service providers and has been actively participating in international initiatives aimed at promoting the sound development of the virtual asset industry.
In addition to its regulatory role, HKMA recognizes the potential of the virtual asset industry to drive innovation and growth. HKMA has established a Fintech Supervisory Sandbox to provide a regulatory environment for fintech startups to test their innovative solutions.

Importance of Open Collaboration

The success of Web3 hinges on open collaboration. Collaboration across different sectors and industries can lead to the creation of new and innovative solutions that benefit everyone. HKMA recognizes the value of open collaboration and has been actively engaging with industry stakeholders to promote it.
HKMA is a member of the Cross-border Regulatory Sandbox of the Global Financial Innovation Network (GFIN), which aims to promote regulatory collaboration between financial regulators. HKMA also participates in international forums, such as the Financial Stability Board and the Basel Committee on Banking Supervision, to promote the sound development of the virtual asset industry.

The Need for Corresponding Regulations

While HKMA recognizes the potential of the virtual asset industry, it also acknowledges the risks associated with it. Some of the inherent risks of virtual assets include money laundering, terrorist financing, and fraud. To mitigate these risks, HKMA has established a licensing regime for virtual asset service providers and has laid down strict regulatory requirements for them.
HKMA believes that corresponding regulations are necessary to unleash the potential of Web3 while mitigating the risks associated with virtual assets. HKMA has been actively working with industry stakeholders to develop a regulatory framework that strikes a balance between promoting innovation and maintaining regulatory standards.

Conclusion

HKMA is committed to promoting the development of Web3 and the virtual asset industry as a whole. Through its regulatory role and active promotion of open collaboration, HKMA aims to create a regulatory environment that fosters innovation and growth while mitigating the risks associated with virtual assets.

FAQs

Q: What is Web3?

A: Web3, also known as the decentralized web, is the next stage of the World Wide Web. It aims to provide a more transparent and secure internet through a combination of blockchain, peer-to-peer networking, and cryptography.

Q: How does HKMA regulate the virtual asset industry?

A: HKMA has established a licensing regime for virtual asset service providers and has laid down strict regulatory requirements for them. HKMA also actively engages with industry stakeholders and international forums to promote sound development of the virtual asset industry.

Q: What risks are associated with virtual assets?

A: Some of the inherent risks of virtual assets include money laundering, terrorist financing, and fraud. Corresponding regulations are necessary to mitigate these risks while promoting the development of the virtual asset industry.