Wu Jie, market maker: Hong Kong has a great chance to become a benchmark for compliance innovation in digital assets in the next three to five years.

According to Techub News, Hong Kong Legislative Council member Wu Jiezhuang tweeted that the “Hong Kong Digital Asset Development Policy Declaration 2.0” released by the Hong Kong Special Administrative Region government showcases its strategic vision to build a globally leading digital asset center. Wu Jiezhuang made the following observations: clearly using “digital asset” (replacing “virtual asset”) as terminology to align with international standards, emphasizing its innovative leadership in the digital age as an international financial center; the goal is very clear, which is to balance innovation with risk management to attract high-quality institutions from around the world; and to enhance the efficiency of financial markets through tokenization and other technologies to serve the real economy; the division of responsibilities has been clarified, with the Securities and Futures Commission leading the issuance of licenses for digital asset trading and custodial services, while the Monetary Authority regulates bank-related activities to avoid functional overlap; the government demonstrates friendliness and recognition towards digital assets, and will submit legislative proposals to include digital assets in the private placement fund and family investment control tools to enjoy profits tax exemptions for qualified transactions. At the same time, the SAR government will take the initiative to regularize the issuance of tokenized government bonds; this will realistically reduce industry operational costs and strive to enhance market liquidity. The government will clarify how the stamp duty exemption measures for ETF transfers will also apply to tokenized ETFs, which will have far-reaching implications for the digital asset industry; substantial cash support will improve the market ecosystem, and Cyberport will launch a blockchain and digital asset perspective funding program, which will not only attract more talent to join the industry but also enhance the overall project pool in Hong Kong.

In summary, Hong Kong has a great opportunity to become a benchmark for compliant innovation in digital assets in Asia within 3-5 years, providing a “Hong Kong solution” for the integration of global traditional finance and the digital economy.