An Enabling Regulatory Framework for Innovation: Web3 & FinTech
23 Oct 2024
FinTech has consistently been a research priority for the Financial Services Development Council (FSDC). This year, the FSDC has published two research reports on blockchain technology and digital ID, respectively. These reports aim to promote the widespread adoption of these technologies within the financial services industry in Hong Kong, enhancing efficiency and advancing the transition to a digital economy.
Creating a conducive environment for FinTech innovations and navigating the paradigm shift driven by Web3 technologies requires an enabling regulatory framework that safeguards and empowers stakeholders in the industry. As innovations emerge—often beyond expectations—it is imperative to understand the fundamental principles required for effective regulation. Moreover, integrating insights from global best practices will enrich our understanding and contribute to more informed, resilient regulatory frameworks. The global interconnectedness also fosters increased cross-border collaboration in FinTech development.
To this end, the FSDC commissioned the Z/Yen Group to develop this report. It is designed to provide an overview of the current regulatory landscape in innovation, focusing on Web3 and its applications, and to share insights that can support Hong Kong in maintaining its competitive edge in the Web3 and FinTech arena, emphasising aspects of the regulatory framework. Moreover, the global community can also draw insights from Hong Kong’s proactive and forward-looking approach in this field.