In a significant development, leaders within Hong Kong’s Web3 industry unveiled the establishment of two new associations, namely the Hong Kong Licensed Virtual Assets Association (HKLVAA) and Web3 Harbour. The announcement was made at the Radical Finance Asia event on Monday.
These associations have a common objective of fostering the growth and advancement of the virtual asset industry and decentralized internet. By collaborating and promoting industry best practices, they aim to drive Hong Kong’s position as a prominent hub for the Web3 ecosystem.
According to a joint statement, both the Hong Kong Licensed Virtual Assets Association (HKLVAA) and Web3 Harbour have opened their doors for membership applications. These associations have outlined plans to commence community activities, research projects, and educational programs from July onwards. With these initiatives, they aim to engage with industry stakeholders, drive innovation, and promote knowledge-sharing within the Web3 ecosystem. By fostering a collaborative environment, the associations seek to enhance Hong Kong’s position as a hub for virtual assets and decentralized internet technologies.
Web3 Harbour, the newly formed association, boasts an esteemed founding board consisting of industry leaders from renowned entities such as Animoca Brands, DLA Piper, and WHub. Additionally, PwC Hong Kong has joined as a knowledge partner, lending its expertise to the association’s initiatives. On the other hand, the Hong Kong Licensed Virtual Assets Association (HKLVAA) comprises founding members who are representatives of Securities and Futures Commission (SFC)-licensed firms with approved virtual asset activities in Hong Kong. Notable members include HashKey Digital Asset Group Limited, Venture Smart Asia Limited, Victory Securities Company Limited, Axion Global Asset Management Limited, and MaiCapital Limited. These founding members contribute valuable insights and experience to HKLVAA’s mission of promoting the growth and development of the virtual asset industry in Hong Kong.
Starting from June 1, Hong Kong will implement new regulations for the cryptocurrency industry, aligning with its aspirations to establish itself as a prominent global hub for digital assets. This move comes at a time when the cryptocurrency landscape faces increasing scrutiny, including lawsuits filed by the United States against various crypto exchanges. Hong Kong’s proactive stance in implementing these rules demonstrates its commitment to fostering a regulated and secure environment for cryptocurrency activities, bolstering its position in the global crypto ecosystem.
Across Asia, countries such as Thailand and Malaysia have been increasing regulatory measures for the cryptocurrency industry, while Singapore has been issuing warnings to discourage retail traders from participating. Additionally, India has implemented stringent tax regulations, aiming to deter investments in this asset class. These developments have led certain digital asset companies to explore alternative jurisdictions, with Hong Kong emerging as an attractive option. Hong Kong’s more favorable regulatory environment in comparison to its regional counterparts has positioned it as an appealing destination for digital asset businesses seeking a conducive and supportive ecosystem.
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Lawrence Chu, co-founder and Chairman of Venture Smart Financial Holdings, which is the parent company of a virtual asset manager based in Hong Kong, and a member of the founding boards of both associations, expressed that HKLVAA serves as a representative body for licensed virtual asset entities in Hong Kong, as well as those in the process of seeking licensing. This highlights the commitment of industry leaders to actively participate in and contribute to the development and growth of the virtual asset sector in Hong Kong through their involvement in these associations.
According to Lawrence Chu, co-founder and Chairman of Venture Smart Financial Holdings, who is involved in both associations, HKLVAA and Web3 Harbour have distinct membership bases and will employ different strategies to cater to the specific needs of their members. However, they share a common focus on promoting knowledge sharing and regulatory clarity. Their main objective is to expedite the advancement and adoption of Web3 technologies in Hong Kong. By prioritizing these key areas, the associations aim to create an environment conducive to the growth and success of the Web3 industry in the region.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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