SmartCon 2024 featured presentations from more than 100 blockchain industry pioneers and financial leaders, who gathered to highlight the convergence of TradFi and DeFi into a more efficient global financial system. To delve deeper into the most groundbreaking topics from this year’s event, Nasdaq TradeTalks host Jill Malandrino interviewed some of the most influential speakers on-site at Hong Kong’s Kerry Hotel.
Joseph Chan, Under Secretary for Financial Services and the Treasury for the government of Hong Kong, sat down with Malandrino to explain how the city has become a global destination for blockchain and digital asset development.
“We have the scale and we have growth,” he said. “So for fintech or web3 companies, if they want to have access to potential investors, potential customers, or potential business partners – this is the ideal place for them.”
Chan highlighted Hong Kong’s history of web3 policies dating back to 2018, when the city pursued a blockchain-based platform for motor insurance. In 2022, the government released its policy statement on the development of virtual assets. In 2023, Hong Kong issued the world’s first tokenized green bond and established its regulatory regime for virtual asset trading platforms. In December, the city introduced a legislative proposal for its stablecoin regime.
“We reckon that virtual assets is an asset class here to stay, so we want to have a very stable environment for the business to grow in a sustainable and responsible manner,” said Chan.
He distilled the government’s approach to digital asset adoption following the “same activity, same risk, same rule” principle.
“Our philosophy is very clear: we believe that for this business to flourish, you need to offer a very transparent, certain, and predictable regulatory environment. That’s what we’re committed to and we think it’s what the industry needs as well.”
In addition to establishing a clear pathway for stablecoins, Chan said Hong Kong has OTC trading and custodian services for virtual assets on the horizon.
“You can expect that in the future we will continue to leverage our leading position in traditional finance to link virtual assets with traditional finance – and we won’t be shying from making moves in terms of promoting the industry in a responsible and sustainable manner.”
Watch Jill Malandrino’s full interview with Joseph Chan.