Hong Kong is doubling down on its ambitions to become a leading digital asset hub, with Financial Secretary Paul Chan Mo-po reaffirming the city’s commitment to maintaining an open and innovative crypto market. Speaking at Consensus 2025, Mo-po emphasized the region’s dedication to fostering Web3 development while ensuring regulatory balance.
“As the Web3 ecosystem evolves, Hong Kong will remain a stable, open, and vibrant market for digital assets,” Mo-po stated, highlighting ongoing investments in infrastructure and talent.
Government-Backed Innovation Hubs Fuel Crypto Growth
Hong Kong has positioned itself as a key player in financial innovation, with its Cyberport Web3 network emerging as a thriving hub for blockchain and fintech firms. The initiative now hosts over 270 blockchain companies, adding more than 120 in just 17 months. Universities and industry partnerships further reinforce this momentum, cultivating the next generation of blockchain experts.
To attract institutional investors, Hong Kong has introduced favorable tax policies, including exemptions on crypto gains for hedge funds, private equity, and family investment vehicles.
Balanced Regulations Pave the Way for Sustainable Growth
Regulatory clarity remains a cornerstone of Hong Kong’s strategy. The Securities and Futures Commission (SFC) has issued nine crypto licenses since mid-2024, with PantherTrade and YAX becoming the latest approved exchanges in January 2025. Mo-po stressed that maintaining an “open, fair, and forward-looking regulatory approach” is crucial for sustainable development in Web3 and financial innovation.
AI and Blockchain Convergence: A New Frontier
Looking ahead, Mo-po sees artificial intelligence (AI) playing an increasingly critical role in financial services, particularly in its convergence with blockchain technology. “AI is constantly evolving and increasingly applied to finance,” he noted, adding that its integration with blockchain will create new opportunities and challenges.
Hong Kong has already outlined a clear AI policy in financial services, with regulators working closely with the industry to establish a transparent framework. The Financial Services and Treasury Bureau introduced a dual-track AI policy in October 2024, reinforcing the government’s proactive stance on technological advancements.
As Hong Kong cements its position as a global digital asset hub, its commitment to innovation, regulatory clarity, and AI integration will be key factors driving future growth.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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