Unleashing the Potential of Web3 and Virtual Assets: Keith Choy’s Keynote Speech at the 2023 Hong Kong Web3 Carnival

According to reports, at the 2023 Hong Kong Web3 Carnival, Keith Choy, interim head of the Intermediary Department of the Hong Kong Securities and Futures Commission, stated in his keynote speech that he would unleash the potential of Web3 and virtual assets. DeFi has concerns about financial stability, data, and investor protection, mainly due to concerns about leverage and borrowing. Starting from June this year, whether the virtual asset trading platform (VATP) provides securities tokens or non securities tokens, we will have to issue licenses to protect investors. According to our existing system for VATP, we still need to conduct relevant consultations, make some adjustments and supplements, and suggest setting additional admission rules for retail investors. We call on all relevant parties in the market to actively participate in discussions and engage in constructive dialogue with us.

Interim Director of the Intermediary Department of the Hong Kong Securities Regulatory Commission: Will unleash the potential of Web3 and virtual assets

On a recent keynote speech at the 2023 Hong Kong Web3 Carnival, Keith Choy, the interim head of the Intermediary Department of the Hong Kong Securities and Futures Commission, has expressed his intention to unleash the potential of Web3 and virtual assets. Choy acknowledged that decentralized finance (DeFi) has raised concerns over financial stability, data privacy, and investor protection due to the high degree of leverage and borrowing involved.

Licensing Virtual Asset Trading Platforms

The Hong Kong Securities and Futures Commission is taking measures to address these challenges. Starting from June this year, all virtual asset trading platforms (VATP), whether they provide securities tokens or non-securities tokens, will be required to obtain a license to operate in Hong Kong and protect investors. The existing system for VATP still requires consultations, adjustments, and supplements, and suggests setting additional admission rules for retail investors.

Constructive Dialogue with Market Players

Choy has called on all relevant parties in the market to participate actively in discussions and engage in constructive dialogue with the Hong Kong Securities and Futures Commission. Such collaboration is necessary to establish a well-regulated virtual asset trading environment that can balance innovation with investor protection.

The Potential of Web3

Choy’s keynote speech highlighted the great potential of Web3 and virtual assets in transforming existing financial systems. With the emergence of decentralized autonomous organizations (DAOs), smart contracts, and non-fungible tokens (NFTs), the potential benefits of Web3 include greater financial inclusion, transparency, and efficiency. Virtual assets can provide new avenues for investment and fund raising, enabling more people to access financial services and capital markets.

The Importance of Web3 Security

However, as with any new technology, there are also potential risks and challenges that need to be addressed. Web3 security is an essential consideration for regulators and investors alike, especially in light of recent virtual asset hacking incidents. Ensuring cybersecurity and data privacy will be crucial for building trust in virtual asset trading platforms and reducing market volatility.

Public Awareness and Education on Web3 and Virtual Assets

To achieve a well-regulated virtual asset trading environment, public awareness and education on Web3 and virtual assets are also vital. Investors need to be aware of the risks and potential benefits of virtual asset investments and equipped with the necessary knowledge to make informed decisions. Regulators must communicate regulatory frameworks effectively, ensuring that market participants adhere to best practices and ethical standards.

Conclusion

Keith Choy’s keynote speech provides critical insights into the direction of virtual asset regulation in Hong Kong and the potential of Web3 in transforming financial systems. Regulations and measures that balance innovation with investor protection are essential to fostering a stable and secure virtual asset trading environment. Collaboration between regulators and market players, public awareness and education, and cybersecurity and data privacy are key areas to address in building trust and achieving the potential of Web3 and virtual assets.

FAQs

Q: What is Web3?
A: Web3 is a new version of the internet that enables decentralized applications (dApps) and blockchain-based services, including virtual assets.
Q: What is the importance of virtual asset trading platform regulation?
A: Regulations are crucial to creating a well-regulated virtual asset trading environment that balances innovation with investor protection, ensuring that investors’ funds and data are secured.
Q: What are the challenges of virtual asset investments?
A: Virtual asset investments are subject to market volatility, cybersecurity risks, and regulatory uncertainty. Investors need to be aware of the risks involved and have a clear understanding of the regulatory environment surrounding virtual assets.