On December 15, 2024, Hong Kong solidified its status as a burgeoning cryptocurrency hub, rivaling the UAE and Singapore. Ivan Ivanov, CEO of WOW Summit, emphasized that the region's innovative regulatory framework and its unique relationship with mainland China create an environment conducive to financial and technological advancements.
Hong Kong's stablecoin policy mandates issuers to obtain licenses and maintain fiat reserves in local banks, enhancing trust and transparency in the cryptocurrency sector. The recent developments underscore Hong Kong's commitment to fostering a secure investment climate.
In October 2024, the Hong Kong Financial Services and Treasury Bureau introduced regulations governing AI in finance, while the Hong Kong Monetary Authority launched Project Ensemble, a cross-border tokenized settlement initiative with Brazil and Thailand. Additionally, the Cyberport Web3 network has expanded to over 270 blockchain firms, adding more than 120 in just 17 months.
ZA Bank, Hong Kong's largest digital bank, initiated retail crypto trading for clients in November 2024, and the government proposed exempting institutional investors from capital gains taxes on crypto holdings, further incentivizing investment.