This photo shows city view of Hong Kong on May 5, 2023. (PHOTO / XINHUA)

Experts in Hong Kong’s virtual-asset community called for “bold measures” to transform the city into a leader in global Web3.

“Hong Kong should work out innovative methods to play a leading role, rather than following the common practice,” Wang Yang, vice-president of the Hong Kong University of Science and Technology, told a digital-asset forum on Thursday.

The latest efforts came in June when Hong Kong’s Securities and Futures Commission started a mandatory licensing regime for virtual-asset trading platforms

“Steady growth should be a big advantage for Hong Kong, but it could also be seen as a problem. If we compromise on the regulation front, the city will never lead the global innovation charge,” Wang said.

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For instance, Hong Kong could roll out stablecoins, a cryptocurrency whose value is pegged to an economy’s foreign exchange reserves, he added.

Hong Kong earlier announced a policy that set out a clear vision for building itself into a global digital-asset hub.

The latest efforts came in June when Hong Kong’s Securities and Futures Commission started a mandatory licensing regime for virtual-asset trading platforms.

“With the establishment of licensed trading platforms and the further clarity of regulatory frameworks in Hong Kong, the industry as a whole will witness increased transparency, leading to a significant boost in investor confidence,” said Livio Weng, chief operating officer of HashKey Group.

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HashKey was the operator of the city’s first licensed virtual-asset exchange that is allowed to service retail users, the company said in a statement on Thursday. However, non-professional investors are restricted to trading in bitcoin and ethereum on its platform.

Yanars Yang, HashKey chief regulatory officer, said the special administrative region has many advantages in developing its virtual asset sectors, such as its sound legal system and prime geographical location.

He added that the interplay between the regulator and business is a keyword for the development of the virtual-asset sector, and it’s important for the city to strike a balance.

Contact the writer at evanliu@chinadailyhk.com