The Legislative Council Secretariat of Hong Kong releases a "Special Newsletter" summarizing the development of financial technology, digital assets and other fields in Hong Kong.

On October 13th, the Hong Kong Legislative Council Secretariat (Secretariat) released the latest issue of "Special Newsletter" "Latest Developments in Hong Kong FinTech and Digital Assets", which introduces how Hong Kong has innovated and applied technology in areas such as financial technology, digital assets, green sustainable finance, and cross-border finance in recent years, and summarizes the relevant discussions and suggestions of the Legislative Council. As an international financial center, Hong Kong has a sound regulatory system, abundant business opportunities, and an active financing market. With its unique advantage of being connected to the world, it is the preferred hub for promoting the convergence development of financial technology and Web3. According to the latest "Global Financial Center Index", Hong Kong continues to rank as the world's third largest international financial center, ranking first in the Asia-Pacific region, and first in the world in the field of financial technology. The Legislative Council has been paying attention to the application and development of Web3 and digital asset technology, and established the Web3 and Virtual Asset Development Subcommittee in October 2023 to study relevant matters. The "Special Newsletter" summarizes the suggestions made by legislators to the government authorities, including improving the regulatory framework for digital assets to protect investors; strengthening in-service training for professionals in industries such as finance, trade, accounting, and law in Web3 and financial technology; and introducing blockchain and tokenization concepts in secondary school curricula to popularize knowledge of digital assets and Web3 technology among the public. In terms of stablecoin regulation, the Legislative Council passed the "Stablecoin Bill" in May of this year, establishing a licensing system for issuers of stablecoins pegged to fiat currency, regulating the issuance of stablecoins and related activities, and empowering the Commissioner of Financial Management to conduct investigations and enforcement actions, making Hong Kong one of the first regions in the world to establish a regulatory system for stablecoin issuers. The "Special Newsletter" points out that the government has proposed multiple amendments to the "Bill" in response to the suggestions of legislators, including allowing stored value facility licensees, in addition to the four categories of licensed providers initially proposed, to sell fiat currency stablecoins. Legislators believe that this will help promote the widespread use of fiat currency stablecoins in Hong Kong. Looking to the future, legislators suggest seeking central support to develop offshore RMB stablecoins in Hong Kong and to boldly explore and practice in emerging financial fields such as digital assets and cryptocurrencies, playing a fruitful role as a "stablecoin test field". The "Special Newsletter" also elaborates on how Hong Kong is promoting green and sustainable finance development through issuing tokenized green bonds, expanding the local green financial technology ecosystem, etc. So far, approximately $43 billion in green and sustainable bonds have been issued in Hong Kong, ranking first in the Asian market for seven consecutive years since 2018. Legislators urge the government authorities to formulate measures to attract mainland enterprises to Hong Kong for related financing and certification tests, enhancing Hong Kong's attractiveness as a platform for issuing green and sustainable bonds. They also suggest the authorities explore the feasibility of tokenizing carbon credits using blockchain technology. The "Special Newsletter" points out that as an important FinTech hub in the region, Hong Kong has established multiple cross-border financial cooperation platforms to promote financial technology innovation and strengthen connections with international markets. Among them, the annual flagship event, Hong Kong FinTech Week, will be held in November this year in conjunction with the StartmeupHK Festival, expecting to attract over 30,000 industry leaders, keynote speakers, and exhibitors from more than 100 economies worldwide. In order to attract more compliant FinTech companies to settle in Hong Kong, legislators suggest that the government continue to optimize the regulatory framework, encourage FinTech experimentation, further simplify the licensing process, and promote the digitalization and transformation of traditional industries, complementing the advantages of mainland cities in the Greater Bay Area, thereby contributing to the innovation and development of the country's emerging industries and digital economy.