An Enabling Regulatory Framework for Innovation: Web3 & FinTech

The Z/Yen Group has today published its report, “An Enabling Regulatory Framework for Innovation: Web3 & FinTech”, commissioned by the Hong Kong Financial Services Development Council. The report explores the development of regulatory approaches in the context of the introduction of Web3, which is designed to enhance the machine readability of web content and foster a more intelligent, interconnected, and decentralised internet architecture.

Around the world, policymakers have grasped the value that FinTech can add to their national economies. Some, such as Australia and the UK (in 2016), were early adopters and established programmes to facilitate the deployment of technology across their financial sectors. Despite the variations in policies, licensing, and legal requirements across different jurisdictions, the race to maximise relative competitiveness in this field has been joined.

The Hong Kong SAR Government has actively fostered the development of Web3 technologies, aiming to broaden their adoption and bolster Hong Kong’s status as a leading international financial centre. A policy statement on the development of virtual assets in Hong Kong was issued in October 2022, followed by the implementation of a comprehensive regulatory framework.