Johnny Ng, a Hong Kong Legislative Council member, has expressed his aspirations to investigate the potential for interconnectivity between digital asset platforms in Hong Kong and a Shanghai-based exchange. The move comes as the city aims to establish itself as a global web3 hub. Ng expressed his desire for enhanced collaboration between web3 industries in both cities during an interview with the Chinese media outlet, The Paper.
In the interview, Ng highlighted the significance of Shanghai as the country’s financial center, housing numerous exceptional financial enterprises. He pointed out the seamless connectivity between the stock markets of Shanghai and Hong Kong through the Shanghai-Hong Kong Stock Connect program.
Ng further expressed curiosity about the possibility of future interconnection between licensed virtual asset trading exchanges in the area and those in Shanghai. Ending the interview, he talked of his eagerness for discussions on this matter in the future and his desire for increased talent exchanges in the web3 sector between the city and the mainland.
Hong Kong’s efforts to become a web3 hub
Hong Kong, known for its pivotal role as a global financial center, has been pursuing its Web3 ambitions. Amid China’s ban on cryptocurrency transactions in 2021, the city has emerged as a favorable destination for crypto firms, embracing a more open approach to the digital asset ecosystem. The city has taken proactive steps to foster innovation and collaboration, recently encouraging banks to engage with crypto-related ventures. The proactive stance of the city’s authorities has led to significant policy developments.
In October, the city released a series of policy statements focused on cryptocurrencies to bolster its position as a leading global financial hub. In a milestone move, the region’s Legislative Council enacted an amendment in December, establishing a comprehensive licensing framework for virtual asset service providers.
Just recently, HashKey and OSL became the first two exchanges to secure licenses for retail trading under Hong Kong’s new licensing regime. These developments indicate Hong Kong’s dedication to providing a conducive environment for the growth and regulation of the digital asset industry.
As city’s journey toward becoming a global Web3 hub continues, Ng’s advocacy for interconnectivity presents a promising prospect. The potential partnership between established financial centers combined with a shared commitment to technological advancement, holds the promise of accelerating the adoption of Web3 solutions and further positioning both regions as leaders in the decentralized era.