X2Y2 Twitter Space: The Future of Hong Kong and the Integration of NFTs

Author: X2Y2

Host (X2Y2): @alex_pengfei

Guests:

CreatorDAO Founder & HashGlobal Technical Advisor Dashuo

Lead of 852 Garden Goldy

CEO of Beam+ Lab James Li

Recording Link

Alex: Hello everyone, I am Alex, the host of this Space. This is our X2Y2 Chinese Space, and the theme today aligns with a significant recent news event, which is Hong Kong's new regulations and advocacy regarding Web3. It opens up a fresh space for Web3 practitioners, expanding everyone's imagination and presenting a new vision for the future. So today's Space theme is the fusion of Hong Kong's future and NFTs. I am honored to invite three outstanding guests.

Goldy: Hello everyone, I am one of the people playing with NFTs in Hong Kong. I started around July 2021 and now mainly serve as an advisor and administrator for different projects, as well as a lecturer for Azuki in Hong Kong.

James: Good evening everyone, I am James, the CEO and Founder of BIPSlap. We are also a startup focused on various Web3 fields and NFT development. We just launched our first film-related project called Critics in June. Thank you for the invitation from X2Y2.

Dashuo: Our CreatorDAO mainly acts as a bridge for creators transitioning from Web2 to Web3, aiming to attract some secondary creation business, allowing for the secondary creation of NFT works like PLP. We also create more project-related scene graphics. I am also a technical advisor for Hash Global, focusing on investing in projects from Chinese teams.

Alex: Let's dive directly into today's topic. The first question is, what are your views on Hong Kong's policy direction?

Goldy: Recently, I have seen more and more articles about Hong Kong's Space. You may have also noticed that Hong Kong is hosting a financial week event, strongly promoting the development of Web3. I think this is definitely a good thing. Regardless of how the future regulations and smaller details pan out, it is clear that Hong Kong is mentioning this topic, which is certainly a positive sign for those involved in Web3.

I have always been in Hong Kong, but previously I had little contact with people in Hong Kong while playing NFTs. There weren't many players in Hong Kong, and not many people knew about NFTs. After this news came out, I saw a strong market reaction, with many people actively seeking to understand what Web3 is. So this is definitely a good thing for Hong Kong and the entire Web3 market.

Alex: Understood, thank you very much, Goldy, for sharing your thoughts. Indeed, from a broader perspective, the Hong Kong government hosting such an event and inviting industry leaders is a strong encouragement. No matter how one interprets it, it is a positive signal.

James: As Goldy mentioned, overall, this is certainly a favorable development. At the very least, because of the current policy direction, regulatory agencies are willing to invest effort into creating a relatively friendly environment for digital currencies or the crypto ecosystem, which will attract more capital, talent, and projects to develop in Hong Kong. If retail digital currency transactions can really be opened up next year, retail investors may have no concerns about trading virtual currencies, and the overall atmosphere may change significantly.

As Goldy shared about the NFT ecosystem, the overall environment in Hong Kong or the NFT projects that people are familiar with, aside from some seasoned players, are mostly celebrity-led projects. Many projects may have cooled down over the past year and have not continued to develop, so the overall market view on NFTs has not been particularly friendly. With policy support, this aspect may gradually shift the overall perception of the Hong Kong market regarding both cryptocurrencies and NFTs, so overall, it is still a favorable policy support.

Alex: Thank you very much for James's insights. I believe this is still related to the government's attitude. Is there anything else to add?

Dashuo: The impact on us is also significant. I have been discussing this with friends recently, as I am still an entrepreneur in China. Originally, this matter could go either way, as we did not plan to issue tokens. However, if we want to develop better or build a community later, we may at least need to issue NFTs. If we are in mainland China, there are many concerns. The Hong Kong government's promotion of this matter has the most significant impact on me because now domestic entrepreneurs are running to Singapore or directly moving their entrepreneurial bases to other countries. This is one direction, but there are also practical issues, as the entrepreneurial costs in various regions are rising. In this situation, we are doing this because we are engaging in geographical arbitrage. The West is very reluctant to do secondary creation, and the cost of creation is still relatively high. Since we want to do geographical arbitrage, we cannot do without the Chinese market and the excellent creator community in developing countries across Asia.

We also want to solve this issue because the entire Web3 is created for creators. NFTs provide ownership to investors and consumers, but the content of that ownership still relies on the creators themselves. Being closer to the creators is also very important. Hong Kong is very close and convenient from various angles. Recently, I have started to consider whether to go to Singapore or directly to North America.

I might think that there are many good crypto projects in Hong Kong, including Sandbox and other financial institutions. Many excellent projects are there, making it a great choice. We might place our core team in Hong Kong, where policies and regulations can be more complete, while also placing some of our technical teams or at least the power of creators domestically, as this cost is still necessary. I think this is a more achievable direction.

In the past few days, I have been discussing this direction with friends, at least registering a company and placing the main entity there. Previously, we were in the Cayman Islands, but it was not very useful, and the structure may need to be adjusted.

Alex: Understood, that makes a lot of sense. I am also an entrepreneur, so I pay attention to what you just mentioned, whether it is the attraction of Hong Kong's policies to entrepreneurs. The earliest FTX actually came from some outstanding Web3 companies or investment institutions in Hong Kong. However, we can see that they have gradually moved away from Hong Kong as a base. It is very unfortunate and is also related to the regulatory restrictions behind it.

Since Hong Kong has opened its restrictions, it has given many hopes to entrepreneurs, providing another option apart from well-known global Web3 bases like Singapore, Dubai, and Los Angeles. I am very much looking forward to seeing your companies thrive in Hong Kong.

Currently, will the audience for NFTs in Hong Kong increase due to policies? You mentioned that you plan to set up an office in Hong Kong. What are your thoughts on this?

Dashuo: I happen to have friends who have this idea, and I also have this idea. They may not be entrepreneurs but are considering investing or doing other things in Hong Kong. From a practical perspective, if I were in Hong Kong, it would not be like everyone else who must go elsewhere to develop because our business is closely tied to mainland China. We need to be closer to do this, as I mentioned earlier.

I have heard from friends that Hong Kong supports dual identities. If one wants to change their nationality in the future, involving matters that are not allowed by domestic policies, changing one's identity might make Hong Kong a good choice.

From another perspective, as mentioned earlier, there are some successful companies in Hong Kong, indicating that the environment is still viable. Friends around me are clearly doing some design services and other businesses in mainland China but may not receive international client orders and intentions. However, if it is a Hong Kong company, there might be opportunities, which is quite practical. Therefore, from various angles, it is still good. If the policies deviate from what we expect and do not provide real support, it is also fine to explore other options.

Alex: What does James think about this? Will the audience for NFTs in Hong Kong increase because more people are coming due to this policy? Or, from another perspective, will more native teams in Hong Kong emerge?

James: Since I am based in Hong Kong, my team is also considered a native team. Although we were established earlier this year, overall, due to policy support, I see that many talents in the early stages may not have invested in this area due to a lack of policy support and a deep understanding of the field, worrying about various risks in subsequent developments. The university ecosystem in Hong Kong actually has a lot of good development potential and talent to be found, whether they are high-level technical experts or many excellent graduates. It is indeed a good development soil and infrastructure.

If there is clearer direction under policy support, allowing people to have no worries, I believe there will be a better atmosphere, which is also conducive to the emergence of local projects. Dashuo also mentioned using Hong Kong as an overseas contact point, which indeed allows access to overseas clients who may have fewer political considerations and are willing to do business with Hong Kong companies, which is quite helpful.

I believe more and more projects will emerge, and as mentioned earlier, we will also pay attention to local companies that can emerge. The investment direction is also quite broad, not just NFTs, but also Web3, the metaverse, and other infrastructure or facilities related to blockchain, so Hong Kong is quite favorable for project emergence.

Alex: For Hong Kong, since James's team is born in Hong Kong, witnessing the initial openness of Hong Kong, which later became less friendly due to other policy reasons, and is now gradually becoming more friendly again, it makes sense to be more optimistic. I wonder what Goldy thinks about this? Is Hong Kong suitable for new emerging companies, or can it be more inclusive in creating more native enterprises?

Goldy: I can offer some opinions. Previously, the audience for NFTs in Hong Kong, as far as I know, was really limited, mainly for this reason. One reason is that many Hong Kong people I knew were shocked by the Pool Project. There were not many people in Hong Kong who knew about NFTs, and some news online said NFTs were scams. As a result, many people did not recognize this matter and thought it was not something worth investing in, but rather a scam.

As far as I know, this was the mindset of the Hong Kong audience before, so I have talked to many friends about this. I was originally an ordinary NFT player, and I have gradually seen many development opportunities in Web3. Now I am fully working in Web3, and I understand the mindset of everyone when they first come into contact with NFTs or Web3.

What is happening in Hong Kong now is that the government can hear this term, rather than through other media. This is already a good thing. When I hear about NFTs from other media, it is usually just about Bitcoin. If it is not mentioned by the government, sometimes it feels untrustworthy.

Now that the government is talking about Web3, more people will look into what this is. I also know that many excellent projects have emerged from Hong Kong, but early on, I felt that when NFT and projects were proposed, some projects did not explicitly state they were from Hong Kong because it seemed that there was no push for this matter. It was only later that I realized some friends were actually in Hong Kong, and I thought they were overseas. I hope that more and more people in Hong Kong will work hard to promote this matter, and I hope to have more opportunities to meet and discuss what can be developed in Hong Kong. Hong Kong is a relatively special location, serving as a center for domestic friends, domestic projects, or overseas projects, providing an outlet for communication.

I have many expectations for the future. People should not think that many activities in Europe and the US are just about NFTs. Many people know about MYC, and London and Paris are also organizing these. Previously, people paid more attention to Singapore, which is also doing well. I hope that in the future, Hong Kong will stand in such a position and have more different activities to attract people to promote the development of Web3.

Alex: Understood, thank you very much, Goldy, for your excellent insights. Initially, during the crypto boom until 2018, Hong Kong was quite open, and many believed that Hong Kong birthed many impressive companies. However, in the later NFT world, it may have been somewhat like when people talked about projects from Chinese individuals or Chinese projects, leading to a lot of fear due to too many Pools, causing many projects, even if created by Chinese individuals, to be reluctant to disclose that they are Chinese projects, instead opting to communicate in English or other languages. As things have become more open, whether from a legal perspective or an openness perspective, this situation may change, and we will have to wait and see. Goldy mentioned that Chinese projects were previously discriminated against, and I would like to follow up on this: what advantages do Chinese creators or projects have in Web3? We can focus on their strengths in the areas previously mentioned.

Goldy: I believe the advantage of Chinese creators lies in the perspective of art. Eastern culture, especially Chinese culture, has a significant influence on global art, so this is inherently our advantage. We have many talented creators and artists in the Chinese community, and Spaces provide a great platform for their development. NFTs are inherently related to art, and with different empowerment and roadmaps, we can develop various things.

A significant advantage is the historical development of Chinese art, which provides a lot of inspiration. Chinese creators also have another advantage, which is to look at the teams behind different projects that have already emerged. The team behind the Red Bean project I am using is entirely Chinese, just perhaps raised overseas. Another unique aspect of Chinese individuals is that I have seen many different companies that are very diligent. It is not to say that others are not diligent, but I feel that Chinese individuals tend to push things harder when starting new ventures.

Our communication is also extensive. Although I have participated less in domestic or Chinese Twitter Spaces, if you have seen, especially in China, there are many domestic projects, and communication is quite abundant. I believe this is also our advantage. In the development of Web3, people often say decentralization, and this matter requires more communication to see what can be done because there is no center. Overall, what I mentioned earlier are some advantages of Chinese creators in Web3.

Alex: Understood. I think you made a good point. Goldy believes that Chinese creators may be very hardworking in terms of absolute value. For example, the Red Bean Azuki project is backed by Chinese individuals, specifically Chinese Americans. Among all the blue-chip projects, the entire concept or creative process, including interaction with the community, is done exceptionally well, as it can effectively mobilize everyone's enthusiasm and actively communicate with the community. Of course, this cannot be separated from the efforts of the main creators or the team behind it. The semi-free-range state of other blue-chip projects may differ, and I think this is a very good point.

Dashuo: What has been said is already very good. I think the timing is also crucial. The reason why Chinese projects had a poor reputation before and overall evaluations were not good is mainly because the applications had not yet emerged. We had not reached an application era, and the focus was more on making breakthroughs in underlying technologies, underlying public chains, or foundational technologies. It is not that Chinese individuals are incapable, but the top research institutions or research environments still have advantages in the West. Therefore, the achievements and breakthroughs in this aspect within the Chinese community have not been many, and for a long time, there were no practical applications.

Entrepreneurs have been trying to promote a large ecosystem, and I think the capacity for such a large ecosystem at that time was not particularly good. In the past two years, we have been saying that the application era has arrived, with DeFi starting and NFTs emerging, and PFPs becoming popular, allowing us to see what can be achieved. As Goldy mentioned, the entire Chinese team behind Azuki is doing exceptionally well and is now leading the development of PFPs. Recently, protocols based on physical goods have been introduced, which have already begun to push the industry forward in terms of technology, contributing more. I believe that Chinese individuals also have cost advantages, which are closely related to their hard work, as developers and creators have significant advantages.

Alex: Thank you very much for Dashuo's explanation and supplement; it has been very on point, and there is not much to add. The last difficult question is for James. Let's see if there are any other advantages or strengths.

James: Goldy and Dashuo have shared a lot, covering the advantages of Chinese individuals quite well. Perhaps one more point is related to talent. Our talent pool is particularly abundant. During the internet era, there were many developers who have not genuinely transitioned to this field to seriously start developing and researching. If Hong Kong can serve as a center or node to promote this development in the Asian region, the reputation of Chinese individuals in the entire circle and the confidence others have in our projects will certainly improve in various aspects.

In fact, there is more misunderstanding from the outside regarding Chinese projects, which may also be how Chinese individuals view themselves. We tend to focus on those Pool projects or timing issues, but there are also many foreign projects that have Pool situations. We cannot completely separate Chinese and foreign individuals into two opposing groups, as there are many different nationalities among foreigners. However, the Chinese community is indeed quite large, and overall, it feels like many Chinese projects have a bit of a lack of confidence. Of course, I believe there will be better development opportunities in the future.

Alex: Earlier, everyone talked about Hong Kong's Chinese creators and potential policy directions. James, under such opportunities, how should NFT project parties or NFT-related platforms seize the opportunities presented by this policy direction? What new opportunities might arise? Personally, I believe the focus of NFTs is still in North America, primarily led by a series of core circles in North America. The most crucial aspect of Hong Kong's vigorous development is the support for NFTs and related startups. How should they grasp this opportunity?

James: Continuing this topic, I believe that with policy changes or support, there will be a wave of benefits occurring in Hong Kong, whether it is talent, capital, or even user growth. For some startups, the initial development scale will be quite helpful. We can see that from the policy level, there are many government-supported funds or at least an intention to support local enterprises to embrace Web3 and explore the possibilities of developing related businesses.

In fact, these are beneficial for startups or project parties to gain profits or better development space in Hong Kong, which will be quite different from the overall environment in the past. Of course, there are many types of NFTs, but Hong Kong has always been one of the top three art market trading places in the world. Previously, both Sotheby's and Christie's moved their Asian centers to Hong Kong, so from the perspective of the art market, Hong Kong is a place with good development. Additionally, Art Basel is also held in Hong Kong.

Overall, there is significant development space for art-related NFT projects, whether it is finding different types of artists or connecting with overseas artists. This aspect is quite helpful for art-related NFT project parties.

With the overall policy support, other aspects can provide many supports to companies or startups. In the past, the existing support for startups in Hong Kong did not adequately cover the crypto ecosystem. There were some small or semi-private accelerators or incubators that were somewhat helpful, but the overall business environment and investment environment changes brought by government-level or larger pushes are quite advantageous for project parties in Hong Kong.

In the future, there may be a wave of capital looking for project parties because everyone knows that good projects may be in the US. Hong Kong's investment institutions may not necessarily have the opportunity to access good investment opportunities. If there are good projects in Hong Kong, they can seize these opportunities. Hong Kong is indeed quite suitable for project parties to develop.

Alex: Thank you very much for James's insights. What does Goldy think? How should NFT project parties seize this opportunity?

Goldy: A significant opportunity for project parties is that Hong Kong serves as an outlet. The meaning of an outlet is that previously, many project parties might have wanted to leverage the domestic market, such as communicating with domestic friends, as there are many such projects in China that cannot find a position to assist. Under previous policies, everyone felt it was not very clear whether they could clearly use Web3 as a premise to hold activities domestically.

Now, Hong Kong has become a place where many Western projects can be compared, and there are many projects in Asia. In the future, Hong Kong can serve as a point of exchange for projects from different places in Asia and North America. Different NFT project parties, whether in Asia or North America, can assist the entire international market from this place. I believe that in the future, Hong Kong should be able to take on this role. James also mentioned that there are many different universities in Hong Kong, where many students are researching Web3 and future developments. I also have a society that writes different articles to share my views, which proves that there are many excellent talents emerging in Hong Kong.

Whether from the past or the future, I am full of hope for Hong Kong. As I mentioned earlier, whether in China or Hong Kong, everyone has the ability and talent. I look forward to seeing more different projects in the future, possibly going to Hong Kong to find resources and talents for assistance. I hope that more and better projects will emerge from Asia, even from Hong Kong, which is something we hope to see.

Alex: The last question is more macro: Is it possible for Hong Kong to become the center of digital currency in the future?

Goldy: I believe there is definitely an opportunity. I just saw some recent articles released by Hong Kong, which mentioned that they are promoting a digital Hong Kong dollar. As James mentioned, we can expect to see more places in Hong Kong using this digital currency. Because now, in Web3, some friends still do not understand this, as the usage scenarios are relatively few.

People may think they need to invest or really study this thing to come into contact with this currency. However, if the Hong Kong government says it will introduce a digital Hong Kong dollar, it means that even a friend can have the opportunity to use this in their daily life. I think just looking at this point can already answer your previous question: Hong Kong absolutely has the potential to become the center of digital currency in the future. We can look forward to what policies will be introduced later or how to assist the development of different digital currencies here.

Alex: Will this drive the development of related industries, such as digital currency and NFTs, as well as a series of SBTs, data storage, and other related services in the future?

Dashuo: I think it mainly depends on the entrepreneurs and the local government's determination. As long as the policies are relaxed, I believe entrepreneurs will go there. There are many teams in mainland China that have the capability and a strong desire to start many things. Hong Kong itself has many talents, especially those with financial and international compliance backgrounds, which I think is very important.

Shanghai in mainland China is very active, with the most high-quality projects. Chinese individuals have good projects, and they are all concentrated in Shanghai. For example, the Layer 2 protocol, which does very well in DeFi, and many other excellent projects have their headquarters in Shanghai and are recently moving outward.

If Hong Kong's policies stabilize over time and become increasingly favorable, many teams will choose to start their businesses in Hong Kong as a primary base. The things you mentioned will definitely have a significant landing effect because they represent the export of the entire mainland China. Web3 itself has no borders; no country can completely close off Web3. Bitcoin has been developing for over a decade, and no one can completely suppress it. My feeling is that Hong Kong might serve as a testing ground because if the massive economic entity of mainland China were to open completely, it would bring enormous risks. Therefore, trying this in Hong Kong makes sense. Given the cognitive level and risk tolerance of Hong Kong people, it can better promote this matter. The entire market includes the international market, which may conduct some business with mainland China. If it is compliant in Hong Kong, it will certainly help in the subsequent development in mainland China. No one can ignore the largest market in Asia in terms of population.

Alex: What does James think? What is the potential for Hong Kong's future growth? Especially with competitors like Singapore, or even further afield like Dubai, and recently Bangkok in Thailand has seen a surge in blockchain activity, as well as Ho Chi Minh City in Vietnam, where many people are heading. Cities like Lisbon in Europe are also seeing a rise in projects. From my previous experience in VC, I have seen many projects emerging in these places. What do you think about the opportunities for Hong Kong to stand out among these competitors or become a rising star?

James: Goldy and Dashuo have already shared some existing advantages of Hong Kong. If we look at the broader competition, it really depends on the government's determination and the level of support behind it. First, we need to see the openness of the policies and whether they can catch up with Singapore. We need to recover from the previous policy lag or misjudgments, as there were different considerations at the time. Now we need to catch up on time, and it really depends on the extent of policy implementation and whether the openness can catch up with these places.

These places still have a certain time advantage, pulling resources in various aspects to their locations. This may be the case in Asia. If we look at the international level, it is indeed quite challenging, as we need to compete with the US and other places. However, the US also has its own situations, as it is developing quite rapidly, and different places there are emerging, each trying to establish itself as a crypto center, whether it is New York or Miami.

Hong Kong still has a relatively good geographical advantage, along with different funds and resources. Therefore, if the entire country supports it, with different resources using Hong Kong as a pilot, whether as an external contact point or for funding and talent, supporting this place to become a center for digital currency is still very possible. Of course, overall, funding will still be a consideration for risk aversion, especially in the crypto ecosystem, which may also be a point of concern.

The future development policies of Hong Kong and the stability of the entire system will also be factors that these funds and even project parties will consider. This may be a bit troublesome, but if the Hong Kong government can manage this well and strengthen the confidence of investors and project parties, in the long run, Hong Kong has great potential to develop into a center for digital currency.

Alex: In comparison to other cities, although currently Singapore or some cities in North America have more complete documents from the Hong Kong government, we must compare the degree of commitment from the Hong Kong government to see how willing they are to benefit startups. For instance, in Singapore, Web3 startups, even very small companies, can receive several EPs (Employment Passes) for their employees, and the support was quite substantial. Therefore, I am very much looking forward to whether Hong Kong can issue relevant policies for implementation. Currently, the policies seem to be more macro, and everyone is interpreting which direction they are heading or how they will cooperate with the mainland government, and whether it will be sustainable or just a shout without follow-up. We need to further monitor and refine this.

If anyone has entrepreneurial ideas, please pay attention to the developments in Hong Kong. I warmly welcome everyone to discuss. All the guests have spoken quite a bit. Is there anything else you would like to add, or if there are any audience questions, please raise your hand.

Elizabeth: Among Hong Kong, the US, and Singapore, which one do you recommend the most?

Goldy: It depends on what you mean by recommending a place. From my perspective, different places have their own advantages. As mentioned earlier, the US, Singapore, and Hong Kong: in my view, Hong Kong is a rising star. We have just started discussing how Hong Kong is promoting Web3, while the US has been pushing Web3 for a long time. Therefore, from the perspective of NFTs, people often discuss that most blue-chip projects have emerged from the US, such as Yoga Labs. The US will still hold an important position in future developments, as it is the largest NFT activity hub globally.

I also have many friends in Singapore, and I believe there are some friends from Singapore in the audience. Their NFT protocols are actually quite strong. A relatively OG project in Singapore can attract two to three hundred people to events, and the holders come from various backgrounds. This is an interesting aspect of Web3, where everyone has different backgrounds but enjoys and promotes Web3, using their existing resources to exchange and share different opinions.

Singapore's offline events are well organized, such as BBLC hosting events. Therefore, I believe Singapore will still hold a significant position in Asia, allowing people from different countries to interact. Hong Kong is also a place we have been discussing as a rising star, and I think we should look forward to it.

Currently, I cannot say that Hong Kong has produced any remarkable events or exchanges, nor can I say that there are many large projects and companies in Hong Kong, although there are many well-known large companies that originally came from Hong Kong. With the policies being introduced in Hong Kong, the government may not have explicitly stated it yet, but they have roughly mentioned that they will promote this matter, so everyone can look forward to and pay attention to the developments in Hong Kong. As for which place I would recommend, I really cannot pinpoint one. In my heart, Web3 has no borders; we cannot say which country has more advantages or is more recommended. However, I hope that in the future, in the three places of the US, Singapore, and Hong Kong, I will have the opportunity to meet everyone and exchange ideas.

Dashuo: As mentioned earlier, there are some policy benefits for those from mainland China going to Hong Kong. Are there any incubators organized by the Hong Kong government? The upcoming policy impacts are quite significant.

Because this industry inevitably involves issuing assets, will there be a more complete regulatory mechanism? As long as there is a regulatory mechanism in place, legal assets will be safe and can ensure compliance with relevant laws. I may first take action and then wait for the Hong Kong government to introduce other policies.

I did not hear the previous question because I am currently not connected and cannot see the new speakers.

Not only we ourselves, but also the founders of Hash Global will go to Hong Kong next year to seek more Hong Kong companies or find some Asian or Chinese teams to explore more projects. Previously, investment institutions in mainland China also had this idea, which I think is very important.

Elizabeth: The guests' speeches have been particularly wonderful. Thank you for your patience. I would like to ask, besides Hong Kong, Singapore, and the US, what do you know about Australia?

Goldy: I cannot say that I know Australia very well, but I have encountered different NFT project companies early on, and the Build team is also in Australia, such as a very early 3A project. Many people may be familiar with NFTs in Australia. I know quite a few friends from Australia, but I have not paid particular attention to their country's policies. I know there are many projects with different advantages there.

Alex: The overall atmosphere in Australia may be more free-spirited, but the development of crypto in Australia far exceeds that of many countries and regions, including what we call Singapore. Modernization is typically characterized by venture capital and family offices. Some local investors in Australia are more niche entrepreneurs, including Chinese entrepreneurs or very local entrepreneurs. This may differ from other regions because the entrepreneurs often target the Oceania market, as Australia is relatively independent, focusing on Oceania and New Zealand, and its culture is very similar to that of Europe and the US, especially close to the British Commonwealth. The entrepreneurial atmosphere is very good there, and their startups may perform better than in Singapore, although there are not as many investors as in Singapore.

CryptoOctopus: Regarding issuing tokens and NFTs, are there any clear policy guidelines on utility and governance? For example, can a DeFi token or other tokens be issued? This is the first question. The second question is whether private institutions are allowed to issue stablecoins in the overall crypto market, including exchanges and ETFs. Are there any specific policies in place now?

James: The previous questions are very pertinent, especially for a developer. However, from a policy perspective, the government has not yet released anything very clear. It is more about providing hope. It is still unclear whether specific DeFi tokens can be issued, although there have been some projects attempting to do this in Hong Kong. I believe their main entities are not based in Hong Kong. Currently, we can see that from the perspective of the Securities and Futures Commission, policies related to Web3 and the metaverse are relatively open, and issuing NFTs should not be a significant issue.

Of course, everyone can also see the previous incidents of failures. There have been some inquiries in the US, and Hong Kong's regulatory agencies often inevitably reference existing cases in the international market to formulate different regulatory policies, which can also serve as good references for entrepreneurs.

If it comes to issuing stablecoins, I believe that the probability of a single institution issuing stablecoins in Hong Kong is relatively low, unless it is more of a government-supported institution. Most likely, it will be the government itself issuing this matter, as the overall market acceptance will be higher if it is from the government. If a private institution wants to issue stablecoins, it may be somewhat challenging to gain government support and recognition.

Dashuo: A few days ago, I heard about this matter. Initially, there was a type of STU, similar to the issuance of securitized assets or physical assets on-chain. If the restrictions are relaxed, it may be possible to issue STUs of eight million yuan aimed at professional investors, which could be a way for companies or other startups that have not issued tokens to issue assets, but there is a limit. The ETF refers to this matter. There were many concerns about asset ETFs in the past, but it has now become controllable. As long as proper custody measures are established, it should be feasible. We are exploring the feasibility of ETFs and relaxing many aspects of this.

By around March next year, there will be more detailed policies released, which will determine whether this is real or just a tentative attempt to announce something, and then there may be no further developments. March next year may be a critical point.

Alex: The guests have provided detailed insights. The last question is for Jane.

Jane: Recently, a favorite Hong Kong comedian, Stephen Chow, released an NFT. It seems that Web3 is attracting talent. I am currently studying in Hong Kong and will graduate next year. I would like to ask the esteemed guests if they believe that Hong Kong is a good opportunity for Web3. My family is in Shenzhen, and Hong Kong is relatively close, but I have not been there for three years due to the pandemic. I plan to enter Web3 after graduation with a star-chasing mindset. I have not been in the crypto space for long, but many friends around me are playing with NFTs. If it seems promising, I would like to develop in Hong Kong.

Goldy: If you had asked me this question eight years ago, I might not have said that you should come to Hong Kong for Web3 development because it seemed quite serious at that time. It might affect your decision to come to Hong Kong. What I mean is that if you wanted to develop in Web3, coming to Hong Kong would have been a great help. However, with the government now having some Web3 regulations or policies for future directions, Hong Kong is indeed a good place, as I mentioned earlier. Even in many local universities in Hong Kong, there are many different students working on Web3. Just like James, Business Net is also a company in Hong Kong. I have encountered many NFT projects recently, and many different companies or investors have talked to me about their interest in entering Web3 and exploring what can be done. If you ask for my opinion, if you genuinely want to develop Web3 in a place close to your background and home, I think Hong Kong is a pretty good place.

But I would like to add that no matter where you are on Earth, the development of Web3 is unique. We do not divide by region; there may be time zones, but we can see people from different countries communicating online. What we are doing is also in Web3. No matter where you develop, I believe that as long as you are willing to develop and want to grow in Web3, you can achieve this anywhere.

Alex: Thank you very much to all the audience members who asked questions and to the three guests. It is getting late, and we have discussed a lot today, whether it is about the future of Hong Kong, the policies of Hong Kong and their impacts, or the advantages of Chinese entrepreneurs based in Hong Kong and their potential developments. Therefore, I warmly welcome everyone to continue paying attention to the future policy developments and directions in Hong Kong, as well as the trajectories and futures of Chinese entrepreneurs. Please keep an eye on relevant opportunities and information. I hope this episode of Space helps more people understand related opportunities.