Hong Kong is reinforcing its position as a leading financial center in Asia by embracing cryptocurrency and Web3 innovation. Speaking at Consensus 2025, Hong Kong Financial Secretary Paul Chan Mo-po reaffirmed the city-state’s commitment to maintaining a stable, open, and dynamic market for digital assets.
Hong Kong’s Pro-Web3 Initiatives
Mo-po outlined the steps Hong Kong has taken to build the necessary infrastructure and workforce for its Web3 ecosystem. The Cyberport and Science Park have played a key role in fostering blockchain innovation, while partnerships between universities and the private sector have equipped the workforce with essential skills for the growing digital economy.
Tax Incentives and Web3 Infrastructure
Hong Kong has actively cultivated a business-friendly environment for blockchain and digital assets. The state-run Cyberport Web3 network now hosts over 270 blockchain firms. Additionally, reports suggest that Hong Kong is planning tax exemptions for hedge funds, private equity firms, and family investment vehicles to further attract investors.
Mo-po described the city-state’s regulatory framework for crypto as open, fair, balanced, and forward-looking, reinforcing its commitment to sustainable growth in the industry.
Crypto Licensing and Exchange Approvals
Despite its ambitions, Hong Kong has taken a cautious yet steady approach to crypto regulation. Since launching its licensing framework in mid-2024, the Securities and Futures Commission (SFC) has granted approvals to only nine firms. Among the most notable licensed entities are crypto exchanges PatherTrade and YAX, both of which received their operational licenses in January 2025.
AI and Blockchain: The Future of Finance in Hong Kong
Mo-po also highlighted the transformative potential of artificial intelligence (AI) and blockchain technology in financial services. In October 2024, the Financial Services and Treasury Bureau introduced a dual-track policy for AI adoption in finance, aiming to integrate advanced technologies into the sector while maintaining regulatory oversight.
Hong Kong’s proactive investment in blockchain, AI, and regulatory clarity is positioning it as a leader in the global digital asset space. By balancing innovation with compliance, the city-state’s approach could serve as a model for the future of crypto regulation in Asia and beyond.
