On October 31, the Hong Kong SAR government has issued a policy statement on the development of virtual assets in Hong Kong, demonstrating a more open and accommodating regulatory attitude. The relaxation of the policy on trading virtual assets by individual investors has also served as a positive guide for the development of virtual asset-related businesses in Hong Kong. As an important participant in the crypto field and ecological builder of the metaverse in the Asia-Pacific region, Armonia has been paying attention to the industry development and policy changes of virtual assets in Hong Kong. Subsequently, Armonia will actively take advantage of the policy dividend, adhering to the core values of harmony, persistence, cooperation and balance, gradually lay out new businesses in Hong Kong such as stablecoins and other levels of financial technology, build a multi-chain universe with technological innovation as the core driver, build a community of human destiny with DAO as the core leadership, and create value for global blockchain users.
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Hong Kong released positive policy for the virtual asset industry
On October 31, the Hong Kong Financial Secretary officially released the “Policy Statement on Virtual Assets Development in Hong Kong”, which sets out the Hong Kong government’s vision and strategy for the virtual assets sector, its regulatory system, its stance on opening up access to virtual assets to investors, and a series of pioneering projects to catch the technological advantages of virtual assets.
This unprecedentedly positive declaration demonstrates that the Hong Kong government is attempting to create a more convenient and regulated environment for the virtual asset industry in Hong Kong to flourish sustainably, and is an important step in Hong Kong’s efforts to rebuild its reputation as a financial center and join the race to become a global Web 3.0 hub.
Specifically, the Hong Kong government’s measures to support the virtual asset industry include stepping up preparations to provide a licensing regime for new virtual asset providers, removing the requirement that only allows professional investors with more than $8 million in assets to participate, setting new rules for cryptocurrency futures ETF issuers, establishing a technology fund to support fintech development, and launching a series of pilot programs.
Among which what the market is most looking forward to is that Hong Kong is considering opening up the trading of virtual assets to retail investors, while currently Singapore, the US and other countries are the ones who have been emphasizing restricting retail investors from trading cryptocurrencies.
In retrospect, Hong Kong’s policy direction of friendly openness to this industry is well documented. The Hong Kong Securities and Futures Commission (SFC) had articulated a conceptual framework for regulating virtual asset investments in 2018, and formally released the regulatory framework and licensing conditions for virtual asset trading platforms in 2019, and openly accepted sandbox applications from the public. By 2020, the SFC finally approved the first approved digital asset trading platform, and from 2021 to the present, the focus has shifted to the support and development of the digital Hong Kong dollar and central bank digital currency (CBDC).
It can be said that in the context of the Hong Kong government’s efforts to plan for Hong Kong’s return as an international financial center, the policy of supporting virtual assets is natural based on the assessment of past crypto regulatory history and experience.
Although there are still many challenges, the clearer and more open policy commitments made by Hong Kong on tokenization, NFT and stablecoin will have far-reaching market appeal and help drive Hong Kong back to the center of crypto assets. We are looking forward to the subsequent implementation of sustainable and stable policies.
Armonia will gradually set up stablecoin business
In Armonia’s view, this declaration shows the confidence, ambition and determination of the Hong Kong government to participate in the competition for the global virtual asset center, which will give great confidence and incentive to Chinese entrepreneurs in Web3.0, blockchain and crypto technologies worldwide. In addition, it will prompt more projects, technologies, personnel and capital to return to Hong Kong, which also heralds a new era of metaverse+web3.0 blossoming in Hong Kong.
In fact, since the establishment of Armonia Singapore Foundation, Armonia has already started to lay out its fintech business in Hong Kong and other places, and at the same time set up a legal compliance team, formulated an internal control plan that meets local regulatory requirements, and made full use of the advantages of local policies to reasonably carry out various crypto activities.
This positive policy guidance in Hong Kong will not only mean a more favorable policy environment for Armonia, but also a more competitive atmosphere, where opportunities and risks will coexist. First of all, the Hong Kong government has stated that it wants to establish a clear, flexible and convenient regulatory environment, and this kind of policy environment, which gives full freedom of development but is also bound by a mature and reasonable framework, has always been what Armonia is seeking. In the future, Armonia will actively explore business opportunities in Hong Kong, and will apply for stablecoin business in Hong Kong when the policy environment and technology are mature, and actively promote the application of stablecoin on the ground, so that stablecoin can become an important part of Armonia’s future business layout.
Furthermore, the Hong Kong government pays more attention to information interaction with regulatory targets and is more open in terms of transparency. Armonia will provide good advice to the regulator through participation in public consultation activities and participation in FinTech Week activities, and call for a more favorable policy environment for the crypto industry.
Finally, the planning orientation of Hong Kong’s virtual asset policy declaration coincides with Armonia’s ecological layout. In the areas of tokenization, NFT, stablecoin, asset management, etc., which are the focus of the policy, Armonia also has relevant product applications and layout plans, which will facilitate Armonia’s better integration into the regulation. At the same time, Armonia will actively promote the establishment of blockchain technology and product standards, and apply for relevant crypto licenses, pilot programs, and related bidding projects in the era of Web3.0 and metaverse to build a first-mover compliance advantage.
Armonia builds a metaverse ecosystem based on policy
After Singapore and Dubai grabbed the wave of Web3.0 and virtual assets, Hong Kong, not to be left behind, has finally opened its arms to the virtual assets sector with a more open and inclusive attitude. Hong Kong is currently the third largest financial center in the world, with over 600 fintech companies and nearly 1,900 licensed asset management companies, with a portfolio size of over USD 4.5 trillion. This virtual asset liberalization policy will undoubtedly promote the prosperous development of the global Web3.0 industry, while expanding its competitive advantage in the international finance industry.
With this favorable policy in Hong Kong, Armonia will do its best to build a metaverse ecosystem. In the field of Web3.0+metaverse, Armonia ecosystem has been cultivated for a long time and has built a huge underlying public chain multi-chain architecture system, blockchain browser, multi-chain wallet APLink and xChain decentralized cross-chain bridge that supports the two-way circulation and interaction of mainstream public chain assets, which can steadily carry the use of crypto ecosystem enthusiasts and early practitioners’ experience.
Meanwhile, in order to allow Web2.0 users to switch into the Web3.0 ecosystem safely and conveniently, Armonia has creatively developed the function of generating and activating private keys for users’ accounts and introduced the decentralized identity NFT for users’ DIDs, all of which have laid a solid foundation for users to quickly enter the Web3.0 field and participate in various exciting applications within Web3.0. Armonia eco-application NFTOne is even benchmarked against OpenSea’s NFT open marketplace, supporting users to issue and trade ERC1155-type NFT assets.
Far beyond that, Armonia has also joined hands with the ecological developer team to create MetaDAO, a decentralized application that integrates Web3.0 social, DAO governance, and metaverse subspace, opening a door for global Web3.0 users to enter a wonderful and colorful decentralized world. In terms of DeFi, Armonia will build and provide decentralized financial products and services under Apollo’s brand including DEX for order books, aggregated trading xSwap, pledged lending stable coins, etc. to meet the management needs of various types of crypto assets for users in the ecosystem.
In addition, Armonia is exploring and practicing SFT assets similar to the ERC3525 protocol, expecting that it can deeply combine with traditional bonds, notes, supply chain finance, business points or products in the GameFi field to provide exciting products and services.
In the future, Armonia will continue to pay attention to the blockchain and virtual asset-related policies in Hong Kong and other countries and regions, and actively develop a fintech business according to the guidance of the policies to promote the continuous improvement and development of Armonia’s metaverse ecosystem and continue to write a magnificent chapter for the development of the metaverse industry.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.