HKWeb 3Feastive Roundtable: Balancing Regulation and Innovation to Build a Sustainable Asian Digital Financial Ecosystem

ChainCatcher reported on the spot that Lee Kwok-quan, Dean of the Global Financial Technology Institute, Yau Dagen, Member of the Hong Kong Legislative Council (Science and Technology Innovation Sector), Chan Si-yuan, Chief Public Mission Officer of Hong Kong Cyberport Management Co., Ltd., and Kosuji, Chief Director of the Japan Virtual Currency Exchanges Association (JVCEA) Japan Cryptoasset Business Association, jointly attended the HKWeb3Feastive Roundtable to discuss "Balancing Regulation and Innovation to Build a Sustainable Asian Digital Financial Ecosystem".&amp;<br /> Qiu Dagen said that the legislative process has been fully advanced, and the next step is to see innovation-driven how to improve the regulatory framework while leaving room for new products and new business models. He cited the start-up exemption mechanism in the U.S. bill as an example and emphasized that the soil for innovation is equally important. He also pointed out that the Hong Kong stock market currently does not allow a market maker system, and the rules for providing liquidity in virtual asset transactions will be touched upon in legislative discussions this year. Regarding the forecast market, he personally believes that Hong Kong does not yet have the conditions for opening up.<br /> Chen Siyuan introduced that Cyberport launched a blockchain and digital asset pilot subsidy program last year, with nine projects participating, more than half of which involved RWA tokenization, with the goal of promoting the project from proof-of-concept to commercialization. He said that Cyberport has gathered more than 300 Web3 companies from 19 countries and regions, and emphasized that trusted digital identity (KYC/AML compliance) is the basis for the scale of RWA and payment projects, while secondary market liquidity determines whether tokenized assets can become real market products.<br /> Koseji revealed that the Japan Financial Services Agency (FSA) submitted a new bill to the National Assembly on April 10, proposing to move crypto assets from the Financial Services Act to the supervision of the Financial Commodity Exchange Act, which means that the government officially recognizes the investment properties of crypto assets., is a major change. He also pointed out that Japan had previously caused more than 200 companies to relocate to Singapore and other places due to strict supervision. Recently, companies are gradually returning through measures such as adjusting institutional tax systems and discussing personal encryption tax reforms.<br /> Moderator Li Guoquan concluded that Asian jurisdictions are not competing but part of the same ecosystem. Excessive compliance costs may push high-quality institutions into gray areas. How to lower compliance thresholds and promote responsibility in regulatory dialogue is a common issue facing the Asian digital finance ecosystem.