Hong Kong Financial Secretary: to strike a balance between regulation and convenience in promoting financial innovation such as Web3 and virtual assets.

BlockBeats reported on April 14th that Hong Kong Financial Secretary Paul Chan stated during his participation in the 2023 Digital Economy Summit that the emergence of Web3 is sparking a new wave of innovation in fintech. Five years ago, Hong Kong had only about 180 fintech companies, but now there are over 800 related enterprises, including cross-border financial services and blockchain services. Virtual assets, stablecoins, DeFi, NFTs, and other technologies will become the main driving force for financial transformation in the coming years, which is an irreversible trend. However, at the same time, some important issues have arisen, such as whether there are regulatory loopholes, whether they will transmit risks to the traditional financial system, and how to best protect individual investors from fraud and scams. Chan stated that in promoting Web3, virtual assets, and other financial innovations, the Hong Kong government will continue to strike an appropriate balance between regulation and convenience. The government is committed to creating a favorable environment for the flourishing development of fintech companies.