Hong Kong has made significant strides in fintech and virtual asset policies, with Secretary for Financial Services and the Treasury, Xu Zhengyu, announcing the city's rise to fourth place globally in fintech rankings. To foster growth and competitiveness, Hong Kong is taking a multi-pronged approach, including :
- *Virtual Asset Policy Declaration*: A second policy declaration will be released soon, outlining future policy visions and directions for virtual assets.
- *Licensing Regime*: Consultations on the licensing regime for over-the-counter virtual asset trading and custody services will take place within the year.
- *Stablecoin Bill*: The Stablecoin Bill is scheduled for a resumed second reading debate in the Legislative Council on May 21. After passage, the Hong Kong Monetary Authority will expedite license application approvals.
- *Fintech Development*: Hong Kong's fintech sector has grown significantly, with over 1,100 companies specializing in AI, Web3, and blockchain. The city has also seen increased investment, with the innovation technology sector bringing in over $2 billion last year.
- *Regulatory Framework*: The government aims to balance regulation and market development, promoting the growth of Hong Kong's virtual asset ecosystem while protecting investors.
These initiatives demonstrate Hong Kong's commitment to creating a vibrant fintech and virtual asset sector, leveraging its status as an international financial center to drive innovation and growth.