This speech was delivered by Christina Choi, the Executive Director of Investment Products at the Securities and Futures Commission (SFC) of Hong Kong, at the Hong Kong Web3 Festival 2025. It mainly elaborates on Hong Kong’s initiatives and prospects in the Web3 and digital asset ecosystem.
Choi starts by using the evolution of the floppy disk to illustrate the rapid development of technology and the potential of Web3. She points out that although Web3 is still evolving, Hong Kong is committed to promoting its development in a pragmatic way.
Regarding virtual asset ETFs, Hong Kong was the first in Asia to launch virtual asset spot ETFs in April 2024 and currently has the largest market in the Asia – Pacific region. The SFC’s regulatory framework ensures the security of investors. It not only licenses key players but also allows in – kind dealing and expands the eligible underlying assets. Moreover, staking services will be permitted on licensed platforms with additional safeguards.
In terms of tokenization, Hong Kong published tokenization circulars in 2023, and since then, various tokenized products have emerged. The SFC is also involved in Project Ensemble, which explores the integration of tokenized money into trading. In the future, secondary market trading of tokenized assets will be explored while protecting investors.
Hong Kong has many advantages for developing Web3, such as a strong financial system, a reliable legal framework, and a strategic location. The government, the Hong Kong Monetary Authority, and the SFC have all introduced relevant policies and plans.
Finally, Choi emphasizes that the convergence of traditional finance and the digital economy has made a breakthrough, and the future success lies in further promoting this convergence. All parties should work together to build a vibrant and interconnected ecosystem.