HK Web3 Feastival Roundtable: Balancing Regulation and Innovation to Build a Sustainable Asian Digital Finance Ecosystem
Comparing news, it was reported live that Lee Kwok-kuen, Director of the Global Fintech Academy, Qiu Dagen, Hong Kong Legislative Council member (science and technology innovation community), Chen Siyuan, Chief Public Mission Officer of Hong Kong Cyberport Management Co., Ltd., and Masashi Yuki, Executive Director of the Japan Virtual Currency Exchange Association (JVCEA) & Japan Crypto Asset Business Association, attended the HK Web3 Feastional Roundtable to discuss “Balancing Regulation and Innovation to Build a Sustainable Digital Finance Ecosystem in Asia”.
Qiu Dagan said that the legislative process is fully advanced, and the next step is to see innovation-driven ways to improve the regulatory framework while leaving room for new products and new business models. Using the startup exemption mechanism in the US Act as an example, he emphasized that the soil for innovation is also important. He also pointed out that the Hong Kong stock market does not currently allow a market maker system, and the rules for providing liquidity in virtual asset transactions will be addressed in legislative discussions within this year. As for predicting the market, he personally believes that Hong Kong currently does not have the conditions to open up.
Chen Siyuan explained that Cyberport launched a blockchain and digital asset pilot subsidy program last year. Nine projects participated, more than half of which involved RWA tokenization, with the goal of moving the project from proof of concept to commercialization. He said that Cyberport has brought together more than 300 Web3 companies from 19 countries and regions, and emphasized that trusted digital identities (KYC/AML compliance) are the foundation for scaling up RWA and payment projects, while secondary market liquidity determines whether tokenized assets can become real market products.
Masashi Yukimasa revealed that Japan's Financial Services Agency (FSA) submitted a new bill to the Diet on April 10 to move the regulation of crypto assets from the Financial Services Act to the Financial Instruments and Exchange Act, which means that the government officially recognizes the investment properties of crypto assets, which is a major shift. At the same time, he pointed out that Japan previously moved more than 200 companies to Singapore and other places due to strict regulations. Recently, through measures such as adjusting the institutional tax system and discussing personal encryption tax reform, companies are gradually returning.
Moderator Li Guoquan concluded that Asian jurisdictions are not competitive relationships but parts of the same ecosystem. Too high compliance costs may push high-quality institutions into a grey area. How to lower the compliance threshold and promote responsible innovation in regulatory dialogues is a common issue facing the Asian digital finance ecosystem.
