Hong Kong Remains an Open and Vibrant Market for Crypto, Says Financial Secretary

Hong Kong Remains an Open and Vibrant Market for Crypto, Says Financial Secretary

Hong Kong’s financial secretary, Paul Chan Mo-po, reaffirmed the city’s commitment to maintaining its position as a global crypto hub during his keynote address at Consensus 2025. With its forward-thinking approach and ongoing investments in both infrastructure and talent, Hong Kong continues to be an attractive market for digital assets as the Web3 ecosystem expands.


Hong Kong’s Commitment to a Thriving Crypto Market

In his address, Mo-po emphasized that Hong Kong would remain “a stable, open, and vibrant market for digital assets” as it seeks to foster innovation and growth within the Web3 space. He highlighted the city's ongoing efforts to build a solid foundation for the future of digital finance, citing major investments in both the infrastructure needed for blockchain technologies and the development of the necessary talent pool.


“Our cyberpunk and science park have become vibrant hubs for Web3 innovation and fintech, while our universities and partnerships with the industry are nurturing generations of blockchain experts,” Mo-po said.


As part of its strategic push to position itself as a leading regional center for financial innovation, Hong Kong has introduced numerous initiatives to support the growth of the crypto and fintech sectors. The city’s Cyberport Web3 network, a state-run business hub dedicated to promoting digital asset innovation, now hosts over 270 blockchain firms. In the last 17 months, this number has grown by more than 120 companies, signaling the rapid development of the city's Web3 ecosystem.


A Forward-Looking Regulatory Approach

Hong Kong has also taken concrete steps to create a favorable environment for digital asset companies through its regulatory policies. Among the most notable initiatives is the proposal to exempt crypto gains from taxes for hedge funds, private equity, and family investment vehicles, designed to incentivize investment and innovation within the sector.


Mo-po emphasized that maintaining an open, fair, and balanced regulatory framework is critical to the long-term success of Hong Kong’s crypto sector. “The key to success lies in maintaining an open, fair, balanced, and forward-looking regulatory approach that is conducive to the sustainable and responsible development of financial innovation, including Web3,” he said.


The city’s Securities and Futures Commission (SFC) has also been active in licensing crypto firms, issuing a total of nine crypto licenses since mid-2024. The most recent licenses were awarded in January to two Hong Kong-based crypto exchanges, PantherTrade and YAX, further enhancing Hong Kong’s reputation as a growing center for crypto services.


The Convergence of AI and Blockchain

In his speech, Mo-po also highlighted one of the most exciting developments on the horizon: the convergence of artificial intelligence (AI) and blockchain technology. He noted that AI, which is evolving rapidly and becoming increasingly integrated into the financial sector, holds great potential when combined with blockchain. The synergy between these two technologies will create new use cases, offering both fresh opportunities and challenges for the industry.


“The convergence with blockchain will create more use cases, with both new opportunities to be captured and challenges to be addressed,” Mo-po explained. He also stressed that Hong Kong has established clear policies to regulate the use of AI in financial services, ensuring a responsible and transparent approach as the technologies continue to evolve.


The Hong Kong Financial Services and Treasury Bureau introduced a dual-track policy on AI adoption in finance last October, reflecting the city’s proactive stance in embracing cutting-edge technologies. This policy is designed to facilitate the safe and efficient integration of AI within the financial ecosystem while ensuring that both financial services and their regulatory frameworks remain adaptable to emerging trends.


Looking Forward

As Hong Kong continues to position itself as a forward-thinking global hub for digital assets, the city remains committed to fostering innovation and creating an ecosystem where both traditional financial institutions and Web3 projects can thrive. With its open regulatory approach, cutting-edge infrastructure, and focus on talent development, Hong Kong is set to remain at the forefront of the global crypto and fintech landscape.


Through its investment in both blockchain and AI technologies, the city is not only attracting crypto firms but also paving the way for the next generation of financial services. The intersection of AI and blockchain is poised to reshape the industry, and Hong Kong is prepared to lead the charge in this exciting new era of financial innovation.

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