ChainCatcher news, Hong Kong Financial Secretary Paul Chan published a new issue of "Secretary's Essay," in which he pointed out that the number of licensed asset management companies in Hong Kong increased by 24% year-on-year last quarter, and the number of open-ended fund companies also surged by over 132% year-on-year.According to the latest data, the number of startups in Hong Kong has reached a new high, with the proportion of startups founded by non-local entrepreneurs rising to 28%.In addition, Paul Chan also announced that the public consultation for the new fiscal year's "Budget" officially begins today.

ChainCatcher news, according to East Net reports, Hong Kong's Deputy Secretary for Financial Services and the Treasury, Chan Ho Lam, met with about 10 representatives from the Web 3 and artificial intelligence (AI) industries on Tuesday to discuss the latest developments in Web 3 and AI, sharing insights on the opportunities and challenges brought to the financial services industry.Chan Ho Lam pointed out that Hong Kong currently has nearly 300 Web3-related companies, and there are 3 virtual asset trading platforms licensed by the Hong Kong Securities and Futures Commission, estimating that several more virtual asset trading platforms will obtain licenses within this year.He mentioned that to promote the development of the virtual asset industry, the Financial Services and the Treasury Bureau will submit a bill to the Legislative Council this year to regulate fiat-backed stablecoin issuers, addressing risks related to money laundering and terrorist financing, protecting investors, and promoting healthy and orderly market development. Additionally, there will be a second round of public consultation next year regarding the regulation of over-the-counter trading of virtual assets and a proposed licensing system for virtual asset custodial service providers.

ChainCatcher news, according to Hong Kong media Xin Bao, the Financial Secretary of Hong Kong, Paul Chan, stated that since the publication of the digital asset policy declaration two years ago, there have been several developments in the short term, including the introduction of regulatory requirements for virtual asset trading platforms. So far, three operators have been licensed, and several more licenses are expected to be issued by the end of this year. The Hong Kong government plans to promote legislation on this matter.Paul Chan also mentioned that an important theme in the financial sector for the next two years is: blockchain and artificial intelligence (AI). While the government embraces new technologies, it also pays attention to the potential risks they bring, making balance and regulation very important. Since the beginning of this year, the largest fintech investments in Asia include three in mainland China and two in Hong Kong, indicating the attractiveness of the Hong Kong fintech market.

ChainCatcher news, the Secretary for Financial Services and the Treasury, Christopher Hui, chaired the fourth meeting of the Financial Technology Project Execution Coordination Group. He stated that the Hong Kong government and financial regulatory bodies have been strongly supporting the development of financial technology, including improving financial infrastructure, building a more vibrant fintech ecosystem, nurturing fintech talent, and facilitating discussions among participants on various aspects of fintech, including how to further integrate virtual assets into mainstream financial markets and the application of artificial intelligence in Hong Kong's financial markets. Cyberport and the Financial Management Bureau reported on the green and sustainable fintech concept validation testing funding scheme, as well as the latest developments in the wholesale central bank digital currency project Ensemble.

ChainCatcher news, Hong Kong Financial Secretary Paul Chan published a blog post, in which he pointed out that the Federal Reserve cut interest rates by 50 basis points last week, marking the first rate cut in over four years. Coupled with the recent rate cuts by several major central banks globally, this has strengthened the financial market's expectation of a gradual decline in global interest rates.The loose financial environment is also favorable for the asset market atmosphere and the business operating environment. Although under the linked exchange rate system, it can be expected that the future interest rate trend in Hong Kong will generally follow that of the U.S., the speed and extent of the cuts will depend on local capital flows and market conditions.In the context of a gradually improving overall environment, there is a greater need to further promote the Hong Kong market. As the appetite for investment risk gradually rises and investors chase higher returns, it is essential to explore broader and more diversified sources of funding for the Hong Kong market.Following the listing of the first ETF tracking Saudi Arabian stocks in the Asia-Pacific region at the end of last year, the Saudi Capital Market Authority recently announced the approval of the first ETF investing in Hong Kong stocks, which will be listed on the Saudi Stock Exchange, allowing local and Middle Eastern funds to invest more conveniently in stocks listed in Hong Kong. Hong Kong will continue to strengthen its promotion in various traditional and emerging markets and foster more cooperation. It is believed that as interest rates decline, it will better leverage funds from different markets to inject new momentum into Hong Kong's capital market.

ChainCatcher news, according to the Hong Kong Economic Journal, the Hong Kong Financial Services and the Treasury Bureau stated that the SAR government needs to establish a regulatory framework for fiat-backed stablecoin issuers, regulating in a risk-based and pragmatic manner. The three main requirements include reserve management and stabilization mechanisms (for example, requiring issuers to ensure that fiat-backed stablecoins are fully backed by high-quality and highly liquid reserve assets), redemption requirements, and governance, knowledge, and experience regulatory requirements.The Hong Kong Financial Services and the Treasury Bureau also suggested that only licensed fiat-backed stablecoin issuers, banks, licensed corporations, and licensed virtual asset trading platforms may sell fiat-backed stablecoins in Hong Kong or actively promote related services to the public in Hong Kong.For existing stablecoin issuers, the proposed regulatory framework will also have corresponding transitional arrangements. Additionally, the Bureau expects that a regulatory framework for fiat-backed stablecoin issuers that is appropriate and in line with international regulatory recommendations can provide sufficient protection for users, addressing potential risks to monetary and financial stability, allowing the virtual asset ecosystem in Hong Kong to develop sustainably and responsibly.

ChainCatcher news, the Hong Kong Financial Services and the Treasury Bureau stated that following the implementation of the licensing system for virtual asset service providers in June last year, the Treasury Bureau and the Monetary Authority consulted the public at the end of last year regarding the proposed regulatory regime for Hong Kong stablecoin issuers, and will soon publish a consultation summary to prepare a bill for the Legislative Council's review.The Treasury Bureau pointed out that it hopes to establish a regulatory system for fiat-backed stablecoin issuers that is appropriate and in line with international regulatory recommendations, which can provide sufficient protection for fiat-backed stablecoin users and address the potential risks that fiat-backed stablecoins pose to monetary and financial stability, allowing Hong Kong's virtual asset ecosystem to develop sustainably and responsibly.Given the important role of fiat-backed stablecoins in the Web3 and virtual asset ecosystem, and the increasingly close connection between the traditional financial system and the virtual asset market, the government needs to establish a regulatory framework for fiat-backed stablecoin issuers. The main requirements include: reserve management and stabilization mechanisms, including requiring issuers to ensure that fiat-backed stablecoins are fully backed by high-quality and highly liquid reserve assets; redemption requirements; as well as governance, knowledge, and experience regulatory requirements.At the same time, to protect fiat-backed stablecoin users, it is recommended that only the following entities can sell fiat-backed stablecoins in Hong Kong or actively promote related services to the public in Hong Kong: licensed fiat-backed stablecoin issuers; recognized institutions (i.e., banks); licensed corporations; and licensed virtual asset trading platforms. For existing stablecoin issuers, the proposed regulatory system will also have corresponding transitional arrangements.

ChainCatcher news, according to a report by Interface News, Hong Kong's Secretary for Financial Services and the Treasury, Xu Zhengyu, stated in Shanghai that this year marks the 10th anniversary of the interconnection between the Hong Kong and mainland markets. Currently, there is a RMB counter for Hong Kong stocks, and 24 large-cap stocks can be traded in either HKD or RMB simultaneously. We are now closely consulting with mainland regulatory authorities to implement allowing mainland investors to directly use RMB to purchase RMB-denominated stocks listed in Hong Kong, connecting the RMB counter to the Hong Kong Stock Connect.

ChainCatcher news, Financial Secretary Paul Chan stated during a briefing to the Financial Affairs Committee on the economic situation in Hong Kong, that Legislative Council member Wu Jiezhuang asked: "Due to the recent inability of large overseas exchanges to obtain virtual asset platform operating licenses in Hong Kong, the public is questioning how Hong Kong's financial sector balances innovation and risk?"Hong Kong's Financial Secretary Paul Chan responded: "Regarding the virtual asset platform operating licenses, we apply the same level of risk, the same rules, and the same level of supervision for all exchanges. I am very optimistic about the development of virtual assets in Hong Kong."

ChainCatcher news, according to the Hong Kong Radio website, the Deputy Financial Secretary of Hong Kong, Huang Weilun, stated that in recent years, the Hong Kong government has focused its policy on promoting innovation in the financial industry, including advancing the development of virtual assets and financial technology. Therefore, it is collaborating with the Hong Kong Stock Exchange to enhance connections with the mainland through the connectivity system, achieving a win-win cooperation in the range and opportunities of investment products.

ChainCatcher news, according to a report by Caihua News, Hong Kong's Financial Secretary, Paul Chan, introduced the expenditure budget and work priorities for the 2024 to 2025 fiscal year, stating that the multi-central bank digital currency cross-border network (mBridge) is expected to launch its first phase of services this year, initially using multiple central bank digital currencies for cross-border transactions for enterprises.In addition, the "Digital Renminbi" will also expand its pilot scope in Hong Kong to further enhance the efficiency of cross-border payments and user experience. In terms of virtual assets, a series of initiatives are being promoted to strengthen regulation to facilitate the robust and responsible development of Hong Kong's virtual asset market.Specifically, the Monetary Authority launched a stablecoin sandbox in March this year, allowing institutions intending to issue stablecoins to conduct testing within a controlled environment. It has also conducted public consultations on the regulation of fiat stablecoin issuers and virtual asset over-the-counter trading services, and is considering the opinions and suggestions received. Depending on the progress of preparatory work, a bill will be submitted to the Legislative Council as soon as possible.

ChainCatcher news, the Deputy Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region, Huang Weilun, stated in his speech at the opening ceremony of the Hong Kong Web3 Carnival, "Web3 is revolutionary, and Hong Kong will develop in a stable, sustainable, and responsible manner. Hong Kong focuses on two main areas in the development of Web3: first, support for Hong Kong's virtual asset trading platforms; second, support for Web3 developers. The Hong Kong government is amending a law to bring virtual asset OTC trading under legal regulation, and the proposed legislation is being formulated. In addition, Hong Kong will allow intermediaries to provide trading of eligible virtual assets, futures, and ETFs. In the future, we will continue to collaborate with more industry participants to bring more possibilities to Hong Kong and promote the development of the Web3 industry in Hong Kong."

ChainCatcher news, according to a report by Caixin, the Financial Secretary of the Hong Kong SAR Government, Paul Chan, mentioned the latest developments of the digital Hong Kong dollar and digital renminbi during the release of the 2024-2025 "Budget".In terms of digital finance, Chan stated that the Hong Kong Monetary Authority completed the first phase of the pilot program for the "digital Hong Kong dollar" (i.e., "e-HKD") last October, researching various local retail use cases, such as programmable payments, offline payments, tokenized deposits, etc. The second phase of the trial is about to start, further exploring new use cases. Another key initiative, the "Multilateral Central Bank Digital Currency Bridge" (mBridge, also known as the "Currency Bridge Project"), has also made progress, with the first phase of services expected to launch this year, becoming one of the first projects globally to settle cross-border transactions for enterprises using multilateral central bank digital currencies.In addition, the pilot scope of the digital renminbi will be expanded in Hong Kong, allowing citizens to conveniently open and use digital renminbi wallets, and to add value through Hong Kong's rapid retail payment system "Faster Payment System", further enhancing cross-border payment efficiency and user experience.

ChainCatcher news, according to Jinshi reports, the Hong Kong SAR government's new financial budget was announced today. The Financial Secretary of the Hong Kong SAR, Paul Chan, stated that the "digital renminbi" will expand its pilot scope in Hong Kong, allowing citizens to conveniently open and use digital renminbi wallets, and to top up through "Faster Payment System," further enhancing cross-border payment efficiency and user experience.

ChainCatcher news, according to Jinshi reports, Hong Kong's Secretary for Financial Services and the Treasury, Hui Chengyu, stated that the one-year transition period for the licensing system for virtual asset service providers implemented in Hong Kong is about to end, and all virtual asset service providers in Hong Kong must submit their license applications by February 29 of this year.It is reported that all virtual asset service providers that do not submit applications by February 29 or before, and receive a "no license issuance notice" from the Securities and Futures Commission, must cease operations in Hong Kong.

ChainCatcher news, according to reports, Hong Kong's Financial Secretary Paul Chan stated in his speech at the Web3.0 Security Technology Summit that Cyberport has currently gathered over 210 companies engaged in Web3.0. Their founders come from more than 20 countries and regions around the world, actively applying relevant technologies in various aspects of life and business, ranging from payment systems, blockchain network security, to digital entertainment businesses, covering a wide range of industries.Paul Chan emphasized the need to seriously address and confront how to construct an effective regulatory framework while avoiding different risks, whether it be the spillover effects of the collapse of large overseas trading platforms or the implications of local scams. It is essential to proactively identify and eliminate risks, and to strengthen investor education comprehensively. In addition, he hopes to seek more new applications, new services, new models, and new products with an open attitude, maintaining a stable safety baseline, and with the flexibility of cross-sectoral understanding. The innovation and mutation of technology make cross-border collaboration the key to responding to technological innovation.

ChainCatcher news, Hong Kong Financial Secretary Paul Chan Mo-po stated at the main forum of the 8th Hong Kong FinTech Week that the government continues to encourage Web3 innovation, and the recent crackdown on JPEX has not undermined its determination.Paul Chan indicated that the Securities and Futures Commission will soon issue a notice regarding intermediaries engaged in activities related to tokenized securities and the tokenization of investment products approved by the SFC.He mentioned that another area of concern for regulators is exploring how to expand their jurisdiction to cover the buying and selling of virtual assets beyond transactions occurring on virtual asset trading platforms.At the same time, the Hong Kong Monetary Authority and the Financial Services and the Treasury Bureau will soon publish another joint consultation on the regulatory framework for stablecoin issuers.

ChainCatcher news, according to the Hong Kong Economic Journal, the Secretary for Financial Services and the Treasury, Christopher Hui, stated that Hong Kong plans to amend the operating regulations for virtual asset over-the-counter exchanges and establish relevant regulatory arrangements. Regarding virtual asset advertisements and influencer promotions, Hui mentioned that there are currently means to handle and regulate the behavior of celebrities or influencers promoting virtual asset platforms.Hui stated that the Anti-Money Laundering Ordinance grants the Securities and Futures Commission new powers to enforce regulations on advertisements and promotions related to virtual assets. Once fraud and misleading situations are identified, the Commission has the authority to issue suspension and cessation orders to the parties involved. If the illegal activities do not cease, it may apply to the court for an injunction.

ChainCatcher news, the Secretary for Financial Services and the Treasury of Hong Kong, Hui Cheng-yu, stated during his appearance on the Hong Kong Investment Committee program that non-fungible tokens (NFTs) that exist solely as digital collectibles are not regulated by the Securities and Futures Commission. However, if they constitute "collective investment" or have the nature of "securities," they must be approved by the Securities and Futures Commission before being sold in the market.In addition, the Hong Kong Monetary Authority is preparing a public consultation on stablecoin regulation.

ChainCatcher news, according to Ming Pao, Hong Kong's Secretary for Financial Services and the Treasury, Hui Cheng-yu, pointed out in an interview with the Investment Committee that related cryptocurrencies in the market will be supported by USD or gold to stabilize their value, with the goal of stabilizing prices. However, there have been instances in the past where stablecoins experienced price fluctuations or even collapsed. The reserve management of stablecoin issuers can affect price stability and investors' rights to redeem legal tender. Considering these factors, stablecoins will not be included in the allowed retail trading until formal regulation is established in Hong Kong.