Hong Kong’s Legislative Council (LegCo) is seeking public input to develop a comprehensive policy framework for web3 and virtual assets.

The Council established a Subcommittee on Web3 and Virtual Asset Development to gather industry opinions and suggestions.

LegCo member Johnny Ng emphasized the need for balanced policies that promote technological innovation while ensuring regulatory oversight. He highlighted several key areas for public feedback, including:

• Balancing technological advancement with legal and regulatory frameworks.
• Collaborating with national efforts to position Hong Kong as a global web3 leader.
• Integrating artificial intelligence (AI) with web3 technologies and improving AI regulations.
• Developing policy and legal frameworks for decentralized autonomous organizations (DAOs).
• Attracting and nurturing talent for the web3 ecosystem.

Regarding virtual assets, Ng outlined strategies to foster a supportive environment through favorable policies and infrastructure. He also emphasized the importance of protecting investors and consumers, including:

• Strengthening regulatory frameworks to boost market confidence and investor security.
• Addressing the potential uses and risks associated with stablecoins.
• Researching appropriate custody methods and regulations for virtual assets.

“We welcome suggestions from the global Web3 industry,” said Ng. “These will be reviewed and presented to the government for consideration.”

This initiative reflects Hong Kong’s commitment to becoming a leading hub for web3 and virtual asset innovation. Public input is crucial for developing a policy framework that fosters responsible growth in these emerging sectors.