Don't panic! Look at the opportunities and challenges under "U.S. Regulation and Hong Kong's New Policies."

Source: ThePrimeidaDAO
Author: Jerry, Daoist
The crypto world is in a panic! This is due to a series of maneuvers by U.S. regulators. Do you remember the excitement two months ago when the tide surged into Hong Kong?! Because of the cautious and steady new policies in Hong Kong, we expected to see a surge of energy in the crypto market in June, but that did not happen.
The new policies in Hong Kong have been cautiously and steadily advancing during the delay in implementation. The primary core task is to ensure the safety of investors' interests, which should be the most fundamental and critical basis for Hong Kong's strong positioning as a crypto economic center, yet it has caused the crypto world to lose its excitement under strict regulatory thinking.
However, in reality, whether it is the development of the crypto economy towards a Web3 native market or the narrative of Hong Kong as a global crypto center, this is the best time.
Let's start with this panic. U.S. regulation has indeed not demonstrated a top-level strategy for a major power's layout and planning. In June 2022, they ambitiously proposed the "Lummis-Gillibrand Responsible Financial Innovation Act" to ensure that the Web3 revolution occurs in the U.S., but the outcome has been underwhelming.
Looking at the regulatory actions against core forces in the crypto economy like Ripple, Coinbase, and Binance before and after the "Responsible Financial Innovation Act," there has been no friendly promotion or protective strategic planning for the healthy development of the crypto economy. Their correct starting point is the interests of ordinary American investors. However, the recent lawsuits against Binance and Coinbase have turned into a frenzy, tearing apart the facade of protecting investors and directly attacking digital currencies; their attitude is to extinguish the crypto economy.
Before this lawsuit, the trend of U.S. regulation ruining the crypto economy had already been established. In April, during the surge into Hong Kong, we described it in our "Hong Kong Insights" series of articles—under the backdrop of the U.S. having played badly in recent times, Hong Kong will become the main narrative of this bull market. This is a common understanding across the entire crypto market, and it is also the fundamental driving force behind the surge in Hong Kong.
Therefore, we judge that this is Hong Kong's opportunity. However, in our "Hong Kong Insights" series, we previously published an article titled "Why Hong Kong Has Little Chance of Becoming a 'Global Crypto Center'," which led many friends to misunderstand us as being pessimistic about Hong Kong or criticizing it.
We take this opportunity to clarify again: our judgment that Hong Kong is "almost impossible" to become a global crypto center is not us "criticizing" Hong Kong's efforts in the crypto economy-related fields. We are hopeful that Hong Kong can seize this historical opportunity to establish itself as a global crypto center, so we did not make a "impossible" judgment.
This article was completed under the excitement of the surge into Hong Kong, as we are confident that Hong Kong will become the main narrative of this bull market. This surge of energy may bring vitality to the bull market, but if Hong Kong merely gathers scattered old crypto players to continue speculating on coins, it is more likely to ruin the narrative of Hong Kong becoming a global crypto center.
As mentioned at the beginning, this surge of energy is indeed volatile, emotionally unstable, and speculative. The slightest movement from U.S. regulators sends them into a panic.
We judge that the grand narrative of Hong Kong becoming a crypto economic center is perfectly combining with the development of the crypto economy towards a Web3 native market. This is a tremendous historical opportunity. For discussions related to the development of the crypto economy towards a Web3 native market, please refer to "The Value Logic of 'Civilization Stops' in 'Bear Market Bottom'."
In this article, we describe: After the early builders of the blockchain world have forged ahead, the infrastructure of the crypto world is continuously improving, and the crypto ecosystem is actively transitioning from being limited to investment/speculation attributes like ICOs, DeFi, and NFTs to the integration of industry and finance. With the crypto economy at its core, the entire global economic system will be reshaped, and the world financial landscape and order will also be rebuilt; on this basis, we can expect to see a prosperous scene similar to "Internet+" in "Blockchain/Web3+"; at that time, technologies, hardware, and high-immersion, low-latency applications related to the construction of the metaverse will also make significant progress; at that time, AI and blockchain/Web3 will converge.
A group of resilient crypto ecosystem builders has already brought us from the zero-sum speculative game of the crypto world into the construction of the blockchain/Web3 industrial ecosystem. This group of crypto ecosystem builders and their Web3 native application market will be the mainstream in the future.
However, there are still challenges for Hong Kong to become a global crypto center—Hong Kong needs to integrate the role of "financial center" into the narrative of Web3/crypto economy and transform the speculative energy of the crypto world into capital that supports the development of the Web3 native market. The key point here is how the Hong Kong government can effectively utilize the capital allocation role of native DeFi within the crypto economic system. Of course, the current choice of the Hong Kong government to focus on bringing off-chain assets worth trillions onto the blockchain is a relatively clever choice—over the next one or two bull-bear cycles, Hong Kong will focus on promoting the integration of crypto economic virtual assets with the real-world financial system as its main battlefield, allowing for both offensive and defensive strategies.
So, how to implement the on-chain of off-chain assets in this trillion-level market? The Hong Kong government needs to leverage the function of native NFTs in the crypto economy to achieve asset on-chain, on-chain confirmation, and transaction circulation. Based on NFTs assisting in the on-chain of off-chain assets, the Hong Kong market can integrate on-chain assets into the crypto economic system through DeFi, thereby becoming capital that supports the development of the Web3 native market.
So, don’t panic! Everything is getting better. The "opportunities and challenges" are in a dialectical unity at the height of "the development of the crypto economy towards a Web3 native market and Hong Kong's global crypto center strategy."