Hong Kong Financial Secretary's policy stance on releasing virtual assets Strengthen the position of Asian financial technology center ... ...

10month31On the th, Hong Kong Financial Technology Week kicked off. At the meeting, the Financial Secretary of Hong Kong (Financial Services and Treasury Bureau) officially released the "Policy Declaration on the Development of Virtual Assets in Hong Kong".

The Secretary for Financial Services and the Treasury of Hong Kong, Hui Zhengyu, stated that the Hong Kong government agreesDLT(Distributed ledger technology) andWeb 3.0These technologies have the potential to become the future development trend of finance and commerce, and are expected to improve efficiency and transparency under appropriate regulation. Hong Kong will be committed to promoting the sustainable development of financial services throughout the entire virtual asset value chain.

The policy declaration provides a detailed interpretation of the Hong Kong government's vision and strategy, regulatory system, the adoption of open access to virtual assets for investors, and the experimental plan launched to grasp the technological advantages brought by virtual assets, including issuance2022Hong Kong Financial Technology WeekNFTGreen bond tokens and digital Hong Kong dollars.

The three experimental plans are very promising, especially the second one, which is that green bond tokens have achieved the digitization of financial assets. In fact, this isSTO（Security Token OfferingRefers to the issuance of securitized tokens, which are issued as securitized tokenssecurity token）。 In addition, Hong Kong may also design and trade virtual assets based on digital fiat currency (digital Hong Kong dollars) Zheng Lei, Chief Economist of Samoye Cloud Technology Group, said.

Establish licensing system

As virtual assets enterWeb 3.0We believe that virtual assets have become indispensable in the market due to the future opportunities brought by the metaverse field The declaration mentioned that as an international financial center, Hong Kong has vast virtual assets. Hong Kong government identificationDLTandWeb 3.0These technologies can reduce or solve current problems in settlement and payment.

Hong Kong has always had a thriving virtual asset ecosystem, such as non homogeneous tokens in the market（NFT）Distribution, metaverse developers, and even trade finance adoptionDLTActivities and other related examples. Regarding the possibility of introducing virtual asset exchange traded funds in Hong Kong（ETF）The government is welcoming, and the China Securities Regulatory Commission will soon issue a circular on this matter.

At present, Hong Kong is developing a comprehensive virtual asset regulatory framework to ensure the healthy development of new fields. In terms of regulation, the Hong Kong government has introduced a regulatory system to license virtual asset exchanges through a "selective participation" approach.

In terms of asset management, regulatory authorities have issued guidelines on the management of virtual asset funds and discretionary accounts; Regulatory authorities provide guidance to banks and financial institutions on the distribution of virtual asset related products, conducting virtual asset transactions, or providing opinions on virtual assets.

In addition, Hong Kong is intensifying preparations for a new virtual asset service provider licensing system, securities andfuturesThe Affairs Commission will conduct public consultation on the appropriate level of virtual assets that retail investors can buy and sell under the new licensing system.

Regulating the license issuance of virtual asset trading platforms may promote the existing asset management market and funds in Hong Kong to become a path to link virtual asset trading platforms.

Under the new system, virtual asset exchanges, like traditional financial institutions, must comply with regulations on combating money laundering and terrorist fundraising, as well as protecting investors. This will also establish the status and credibility of licensed virtual asset exchanges. Financial intermediary and banks will be able to cooperate with licensed peers from the virtual asset sector and provide customers with virtual asset trading services if they meet the relevant regulatory conditions.

From the perspective of the virtual asset exchange, the licensing system can enable it to explore new distribution channels in Hong Kong, in order to leverage the value of the local market to exceed4.5A trillion dollar asset and wealth management market.

New World Development（00017.HK）CEO Zheng Zhigang stated during the Hong Kong Financial Technology Week that Hong Kong has three major opportunities, including the "Digital Financial Asset Issuance Center" The "comprehensive integration of traditional and digital finance ecosystem" and the "Greater Bay Area Cross border Blockchain Financial Center" are bound to become a unique virtual asset center in the world.

In his speech, Zheng Zhigang pointed out that the Hong Kong government will launch a "virtual asset service provider" licensing system next year, which will regulate the management of digital financial investment products based on public blockchain, including the "number one license" issued by the Securities Regulatory Commission.

With the advantage of one country, two systems, Hong Kong will become the only "virtual asset service provider" in the country that is regulated by law, promoting new opportunities.

Virtual asset service providers are also emerging, especially cryptocurrency exchanges and software developers. KPMG China andAspen Digitalto10The latest research released in the month shows that,58%Respondents invest in such service providers, and there are also21%The interviewee stated that they are planning to make such investments in the future.

The survey results show that over9Family offices and high net worth investors are interested in virtual assets.92%Respondents are interested in investing in virtual assets, among which58%Relevant investments have been made,34%We are planning to make relevant investments.

The market space for virtual assets remains vast. Currently,60%There are only insufficient investment portfolios in the surveyed family offices and high net worth individuals5%Belongs to virtual assets, while54%Respondents expressed interest in configuring5%to30%In this asset category.

It should be pointed out that the study selected individuals from Hong Kong and Singapore30Opinions from family offices and high net worth individuals, namely some players at the tip of the pyramid.

For retail investors, this new field has a significant entry threshold. Zheng Lei believes that initially, related projects should be limited to high net worth individuals, who have certain investment experience and can withstand significant investment risks.

After fully evaluating the risks, such projects or products may be graded for management, and only projects or products with lower risk levels are open to ordinary investors, "Zheng Lei said.

Three experimental plans:NFTBond tokens, Digital Hong Kong dollars

In the declaration, the Hong Kong government mentioned three ongoing experimental plans to test the technological benefits brought by virtual assets.

Firstly, for2022Issued during Hong Kong Financial Technology WeekNFTAs a collaboration with fintech andWeb3Proof of concept project of community interaction. Non homogeneous tokens（NFT）It is a newly emerging form of digital asset ownership in recent years. On this year's FinTech Week, the Treasury Bureau and the Invest Hong Kong jointly launched theNFTRelease trial plan to promote useNFT。

Hong Kong Government TelevisionNFTThe issuance activity is a proof of concept project to encourage the financial technology community andWeb3Community participation "shows our determination to promote Financial innovation". IssuedNFTAs proof of attendance for participants, they can receive and send digital badges and souvenirs through blockchain technology.

In addition, with the completion of the innovation hub established by the Monetary Authority and the Bank for International Settlements in Hong Kong earlierProject GenesisThe Monetary Authority is currently conducting an experimental plan for green bond tokens, issuing government tokenized green bonds for institutional investors to subscribe to. Bond tokenization can help improve the efficiency of bond issuance and settlement, reduce costs, and attract more investors.

Through this plan, it is possible to test whether Hong Kong's financial infrastructure and legal and regulatory environment are suitable for using distributed ledger technology to handle the entire bond issuance cycle (including issuance and settlement) Accounting, asset services, second-hand market buying and selling, and redemption), and provide guidance for market participants to issue similar bonds in the future.

It is worth noting that both virtual assets and cryptocurrencies are technological innovation products, but they are not legally recognized legal payment methods and cannot be fully and effectively used for payment purposes, so they cannot become the legal tender of Hong Kong.

In this context, exploring the launch of the digital Hong Kong dollar is also on the agenda. The declaration states that the digital Hong Kong dollar will be released as the "backbone" and pillar connecting legal tender and virtual assets. Previously, the Hong Kong Monetary Authority had stated that it would adopt a "three track approach" to promote the digital Hong Kong dollar.

Zhou Di, Senior Engineer of Fangrong Technology and National Science and Technology Expert of the Ministry of Science and Technology, stated that in promoting the digital renminbi and digital Hong Kong dollar, Hong Kong has a unique role: "For example, through the Bank for International Settlements (Hong Kong) Innovation Center, the Hong Kong Monetary Authority, the Digital Currency Research Institute of the People's Bank of China, and central banks in Thailand and the United Arab Emirates, we have successfully completed the real transaction pilot test based on the digital currencies of central banks in four countries or regions on the Currency Bridge platform for the first time20A commercial bank is based on the Currency Bridge platform to complete multi scenario payment and settlement services for its customers, mainly focusing on cross-border trade

From a national strategic perspective, the digital currency bridge has built a new path for cross-border payments, and the diversity of payment tools has greatly improved the security of China's cross-border payment system.

Zhou Di believes that digital currency includes a series of measures for virtual assets, and Hong Kong can pilot it first. After seeing its value, it can be promoted to the Guangdong Hong Kong Macao Greater Bay Area, and then to the whole country.

For a long time, Hong Kong has played an important role in the development and application of blockchain in the Guangdong Hong Kong Macao Greater Bay Area. At present, Hong Kong and mainland China have gradually developed deep cooperation in the digital economy and blockchain, including jointly establishing cross-border blockchain platforms, applied in fields such as "accounts receivable financing" and logistics procurement in the construction industry.

“The launch of the declaration is a manifestation of Hong Kong's struggle to stay at the forefront of financial technology. On the one hand, blockchainNFT、Web3.0Such related technologies can bring dividends to Hong Kong's industry, capital, and talent gathering; On the other hand, innovative products and service platforms will also serve as a demonstration for the mainland.”Zhou Di said.