Hong Kong parliament sets up crypto legislative subcommittee

Johnny Ng, a Hong Kong lawmaker, said his team is collecting policy feedback from the global Web3 industry following the establishment of a crypto subcommittee under the Legislative Council.

Ng wrote in an X post on Saturday that the Hong Kong parliament has recently set up a subcommittee on Web3 and virtual asset development. “My office seeks to gather insights from the global Web3 industry, propose policy recommendations, and discuss the future direction of the industry in Hong Kong,” he said.

The key focuses for the new subcommittee — chaired by Ng — include enhancing the protection of crypto investors, ensuring financial stability without stifling stablecoin innovation, and exploring regulatory measures for professional crypto custody services.

Ng’s office is also calling for policy suggestions for the integrated development of artificial intelligence and Web3, as well as regulatory recommendations for DAOs, according to his post.

Unlike its neighboring Chinese mainland’s broader crackdown on crypto trading and mining, Hong Kong rolled out the welcome mat for crypto firms last year. In June 2023, Hong Kong officially started its crypto licensing regime for crypto trading platforms, allowing licensed exchanges to offer retail trading services.

In April, Hong Kong debuted spot bitcoin and ether exchange-traded funds. The regulators and industry players are discussing the possibility of including staking within the spot ether ETFs, which could serve as a “competitive edge,” Animoca Brands Chairman Yat Siu told The Block earlier this month. “In terms of how quickly, there’s an optimistic side of me that wants it to happen within the year,” Siu said.

Julia Leung, the chief executive of the Hong Kong Securities and Futures Commission, said earlier this month that bitcoin has clearly shown its staying power as an alternative asset.