Hong Kong legislator: The Hong Kong government must actively explore the innovative combination of Web3 and traditional finance, and should formulate a legal system for the circulation of RWA tokens in a timely manner

Chen Zhongni, a member of the Legislative Council of the Democratic Alliance for the Betterment and Progress of Hong Kong, wrote an article entitled "Empowering the Application Development of Web3.0 in the Financial Industry", in which he pointed out that the Hong Kong government must vigorously develop infrastructure that can support the long-term development of Web3.0. In view of the defects of the current mainstream public blockchain platform in terms of privacy protection, Hong Kong should support the research and development of basic blockchain platforms with security, privacy protection, high efficiency, low cost, energy saving, compliance, modularity and global vision. The authorities need to invest more resources and technology to encourage scientific research and innovation, and formulate policies and regulations to support the development of blockchain technology. Secondly, as an important bridge between Web3.0 and the physical world, digital identity is recommended to speed up the construction of a digital identity system and standards based on Hong Kong residents, gradually establish a set of applications for more widespread adoption of digital identity between public and private institutions, and promote widespread adoption by all sectors, such as incorporating digital identity into the "Smart Convenience" platform. In addition, it is recommended to improve Hong Kong's compliance and regulatory framework in the field of Web3.0 encrypted digital, protect the rights and interests of investors, and promote market fairness and transparency. Risk monitoring and early warning of the Web3.0 market are carried out through technical means such as big data and artificial intelligence. Establish a Web3.0 industry committee, formulate industry norms and standards, and strengthen training for practitioners. At the same time, Hong Kong must actively guide the exploration of innovative combinations of Web3.0 and traditional finance, such as data connectivity between government departments and banks, traditional financial payment and settlement, personal and corporate credit business, supply chain finance, etc. Hong Kong should also pay attention to and accelerate the implementation of stablecoins denominated in Hong Kong dollars and using multiple assets as collateral, and develop digital asset businesses centered on the digitization and tokenization of real assets (RWA), such as bonds, funds, private credit, trade, real estate, carbon credit certificates, and precious metals, promote the standardization of asset chain protocols, and formulate and introduce the legal system for the circulation of RWA tokens in a timely manner to promote seamless integration, data sharing, and asset transfer between the two ecosystems of traditional finance and virtual assets. (Hong Kong Commercial Daily)