The year 2024 marked a pivotal chapter in Hong Kong’s journey toward becoming a global hub for Web 3.0 innovation. What began as a flicker of ambition two years ago has now erupted into a full-blown digital revolution, fueled by forward-thinking policies, robust infrastructure, and an increasingly vibrant ecosystem. From regulatory clarity to international recognition, Hong Kong has solidified its position at the forefront of the next-generation internet economy.
A Foundation Built on Regulation and Compliance
Unlike regions where Web 3.0 growth has been chaotic or unregulated, Hong Kong’s approach has been deliberate, structured, and investor-focused. The cornerstone of this strategy lies in its regulatory framework—particularly the Virtual Asset Service Provider (VASP) licensing regime, which officially launched on June 1, 2023. By the end of February 2024, all virtual asset platforms operating in Hong Kong were required to submit applications for full compliance.
As of December 2024, seven platforms—including OSL Exchange, HashKey Exchange, HKVAX, and Thousand Whales Technology—have obtained formal VASP licenses. This strict yet transparent licensing process ensures that only credible, well-capitalized entities can operate, significantly enhancing market trust and user protection.
👉 Discover how leading platforms are navigating Hong Kong’s evolving digital asset regulations.
Stablecoins have also taken center stage in Hong Kong’s Web 3.0 roadmap. In January 2024, the Hong Kong Monetary Authority (HKMA) published a consultation paper outlining a comprehensive regulatory framework for fiat-referenced stablecoins (FRS). This was followed by the launch of a dedicated stablecoin sandbox on March 12, allowing select institutions to test issuance models under supervised conditions.
By July, the HKMA confirmed it would accept tokenized high-quality liquid assets (HQLA) as reserves for stablecoin issuers—a groundbreaking move that bridges traditional finance with blockchain innovation. On December 6, the government tabled the Stablecoin Bill, aiming to formalize the regulatory regime and cement Hong Kong’s status as a global leader in stablecoin development and oversight.
Real-World Asset Tokenization: Bridging TradFi and DeFi
One of the most transformative developments in 2024 was the acceleration of Real World Asset (RWA) tokenization. Recognizing the potential to unlock trillions in illiquid assets, Hong Kong regulators have actively supported pilot projects that bring physical assets onto the blockchain.
In February, the HKMA issued guidelines on the sale and distribution of tokenized products. Then in August, Ant Digital Technologies partnered with Langxin Group to complete China’s first RWA-backed financing using renewable energy infrastructure—raising approximately RMB 100 million. This landmark transaction entered the HKMA’s Ensemble sandbox program, highlighting Hong Kong’s role as a testing ground for innovative financial instruments.
The Ensemble initiative, officially launched on August 28, enables banks and fintechs to experiment with tokenized currencies for interbank settlements and asset trading. It represents a strategic push to make Hong Kong the world’s premier hub for tokenized finance—a vision further reinforced when Ant Digital unveiled its “Two Chains, One Bridge” platform during Hong Kong FinTech Week in October.
Ecosystem Growth: Funding, Talent, and Infrastructure
Support for Web 3.0 extends beyond regulation. In 2024, Hong Kong intensified its investment in ecosystem development through funding programs, talent cultivation, and institutional collaboration.
The establishment of the Hong Kong Web3 Standardization Association (W3SA-HK) in January signaled a commitment to setting industry benchmarks and fostering global interoperability. Meanwhile, Cyberport launched the Web3 Investment Circle under its investor network and co-founded the Cyberport Draper Dragon Web3 Accelerator with Silicon Valley-based Draper Dragon—aiming to attract high-potential startups and provide them with capital, mentorship, and market access.
At the government level, Chief Executive John Lee’s 2024 Policy Address announced a HK$10 billion "Innovation and Technology Industry Guidance Fund"**, along with a **HK$180 million "Tech Startup Accelerator Pilot Program" to match private investments. These measures underscore Hong Kong’s ambition to become not just a financial center—but a global innovation powerhouse.
Web3Labs further strengthened the entrepreneurial landscape by opening its Web3Labs HK Center in Causeway Bay in November. With USD 10 million allocated for ecosystem support, the incubator has partnered with DFINITY Foundation, KuCoin Labs, and TON to launch joint acceleration programs—providing technical resources and funding to early-stage projects.
Global Events Catalyzing Industry Momentum
Hong Kong’s rise as a Web 3.0 capital has been amplified by a series of high-profile international events that brought global attention and expertise to the city.
The Hong Kong Web3 Carnival in April drew over 30,000 attendees across 150 sessions, featuring keynotes from Financial Secretary Paul Chan and LegCo member Ricky Choi. As a major partner, MetaEra hosted flagship events like the Hong Kong Crypto Finance Forum and Web3 Ecosystem Welcome Reception—fostering connections between policymakers, investors, and innovators.
Even more significant was the debut of Bitcoin Asia 2024 at Kai Tak Cruise Terminal—the first time the prestigious summit was held outside the U.S. Its presence in Hong Kong affirmed the city’s growing influence in the global crypto narrative.
Later in November, Hong Kong FinTech Week attracted over 30,000 participants from 100 economies. With increased participation from traditional financial institutions and regulators, the event highlighted a new era of convergence between legacy finance and decentralized technologies.
👉 See how global innovators are shaping the future of finance at Asia’s top Web3 events.
Financial Innovation: ETFs, Banking Integration, and Market Growth
2024 was also a landmark year for financial product innovation. On April 30, six spot virtual asset ETFs—including offerings from CSOP, Bosera, and Harvest—were listed on the Hong Kong Stock Exchange. Notably, Hong Kong became the first jurisdiction globally to list spot Ethereum ETFs, beating the U.S. by three months.
These ETFs experienced explosive growth amid rising market sentiment—especially after former U.S. President Donald Trump announced his pro-crypto agenda. On December 5, Bitcoin surged past $100,000, driving record inflows into Hong Kong-listed crypto ETFs. Southern Asset Management’s Bitcoin ETF led the pack with an impressive year-to-date return of 87.88% by mid-November.
Traditional finance also embraced digital assets. On November 25, ZA Bank became the first licensed digital bank in Asia to offer retail crypto trading via its mobile app. This milestone was made possible through a strategic partnership with HashKey Exchange, which simultaneously launched HashKey Pro—a professional trading platform offering API access, OTC services, and institutional-grade security features.
By December 12, HashKey reported its total assets had reached HK$10 billion**, with cumulative trading volume exceeding **HK$580 billion in 2024 alone—a clear indicator of institutional confidence and market maturity.
Strategic Vision: Could Digital Assets Join Hong Kong’s Reserves?
Amid growing global interest in national crypto reserves—spurred by Trump’s proposal for a U.S. Bitcoin strategic reserve—Hong Kong lawmakers began exploring similar possibilities. On December 11, LegCo member Wu Jiezheng formally suggested that Hong Kong consider adding digital assets to its fiscal reserves using funds from the Exchange Fund.
While Financial Secretary Chan Mo-po responded cautiously, his openness to discussion reflects shifting attitudes within policymaking circles. If adopted, such a move could position Hong Kong as one of the first major economies to officially recognize crypto as a legitimate reserve asset.
Voices Shaping Hong Kong’s Web3 Future
Behind every policy and milestone are visionary leaders driving change:
- Wu Jiezheng, LegCo Member: Emphasized investor protection and regulatory clarity as pillars of sustainable growth.
- Kong Jianping, Cyberport Director: Predicted Hong Kong could surpass its traditional financial status through leadership in DePIN and RWA.
- Xiao Yi, Co-founder of Animoca Brands: Praised Hong Kong’s balanced approach to innovation and compliance.
- Du Jun, CEO of SINOHOPE: Envisioned Hong Kong as the central hub of a global Web3 economy.
- Liu Yu, CEO of OSL Technologies: Highlighted stablecoins’ role in streamlining cross-border trade.
- Caspar Wong, CEO of Web3Labs: Called for collaborative ecosystem building across stakeholders.
Their collective vision underscores a shared belief: Hong Kong is not just adapting to Web 3.0—it is helping define it.
Frequently Asked Questions (FAQ)
Q: What makes Hong Kong different from other Web3 hubs like Singapore or Dubai?
A: Hong Kong combines world-class financial infrastructure with strong regulatory oversight and deep integration into global markets. Its unique position as a gateway between East and West gives it an edge in attracting both capital and talent.
Q: Are retail investors allowed to trade cryptocurrencies in Hong Kong?
A: Yes. Since June 2023, licensed platforms like HashKey and OSL have offered crypto trading services to retail users who pass risk assessments—a balanced approach that protects consumers while enabling market access.
Q: How does Hong Kong regulate stablecoins?
A: Through a phased approach involving sandboxes and public consultations. The upcoming Stablecoin Bill will establish a formal licensing regime for fiat-backed stablecoin issuers, ensuring reserve transparency and financial stability.
Q: Is RWA tokenization legal in Hong Kong?
A: Yes. While still in experimental stages via regulatory sandboxes like Ensemble, RWA tokenization is actively encouraged under HKMA guidelines issued in February 2024.
Q: Can foreign startups join Hong Kong’s Web3 ecosystem?
A: Absolutely. Programs like the Cyberport Draper Dragon Accelerator and government-matched funding initiatives are designed specifically to attract international innovators.
Q: What role do ETFs play in Hong Kong’s crypto strategy?
A: Spot Bitcoin and Ethereum ETFs provide regulated exposure to digital assets for institutional and retail investors alike—helping integrate crypto into mainstream finance while maintaining compliance standards.
👉 Explore how you can be part of Hong Kong’s expanding Web3 frontier today.