In a powerful reaffirmation of Hong Kong’s commitment to digital innovation, Financial Secretary Paul Chan Mo-po declared that the city remains an “open and vibrant crypto market” during his keynote address at Consensus Hong Kong 2025. Speaking to a global audience of blockchain leaders, investors, and technologists, Chan emphasized Hong Kong’s strategic push to become a leading hub for Web3 and financial technology in Asia.
A Vision for Web3 Leadership
Chan highlighted that Hong Kong is not just adapting to the future of finance — it is actively shaping it. “We are committed to maintaining a stable, open, and dynamic digital asset market,” he stated, underscoring the government’s long-term vision for blockchain integration across financial services.
This ambition is backed by concrete action. The government has invested heavily in infrastructure and talent development, fostering an ecosystem where innovation can thrive. Cyberport, Hong Kong’s flagship tech and innovation park, has evolved into a bustling center for Web3 startups and fintech breakthroughs. Today, it hosts over 270 blockchain-related enterprises — a growth of more than 120 companies in just 17 months.
👉 Discover how top financial hubs are embracing blockchain innovation today.
Building Talent and Infrastructure
One of the cornerstones of Hong Kong’s strategy is cultivating homegrown expertise. Through partnerships between universities and industry leaders, the city is training a new generation of blockchain developers, smart contract engineers, and decentralized finance (DeFi) specialists.
“Our collaboration with academic institutions ensures that we’re not only attracting global talent but also developing local capabilities,” Chan explained. “This synergy between education and enterprise is critical to sustaining long-term growth in the digital economy.”
These efforts align with broader initiatives to position Hong Kong as a center for financial innovation. From regulatory sandboxes to startup incubators, the government has created a supportive environment where entrepreneurs can experiment, scale, and succeed.
Progressive Regulatory Framework
A key factor in Hong Kong’s appeal is its balanced regulatory approach. The Securities and Futures Commission (SFC) has taken a cautious yet forward-thinking stance on crypto licensing. Since launching its formal licensing regime in mid-2024, the SFC has issued nine operational licenses to cryptocurrency exchanges — including recent approvals for PantherTrade and YAX in January 2025.
This measured pace reflects a commitment to investor protection without stifling innovation. As Chan noted, “The key to success lies in maintaining an open, fair, balanced, and forward-looking regulatory framework that supports sustainable and responsible financial innovation — including Web3.”
Hong Kong’s regulatory clarity extends beyond exchange licensing. In a move designed to attract institutional investors, the government introduced tax exemptions on cryptocurrency gains for hedge funds, private equity funds, and family investment vehicles. These policies signal a clear intent: to make Hong Kong one of the most crypto-friendly jurisdictions in Asia.
The Rise of AI-Blockchain Integration
Looking ahead, Chan identified the convergence of artificial intelligence (AI) and blockchain as one of the most exciting frontiers in finance. “AI is rapidly evolving, with increasing applications across financial services,” he said. “When combined with blockchain, it unlocks new use cases — from secure data sharing to intelligent smart contracts.”
This fusion presents both opportunities and challenges. On one hand, AI can enhance fraud detection, automate trading strategies, and personalize financial products. On the other, it raises concerns about transparency, bias, and system integrity — issues that blockchain’s immutability and auditability can help address.
To stay ahead, Hong Kong has already established clear policy guidelines for AI adoption in finance. In October 2024, the Financial Services and Treasury Bureau unveiled a dual-track AI policy: encouraging innovation while ensuring robust oversight. Regulators are working closely with industry players to monitor technological developments and build a transparent governance framework.
👉 Explore how AI and blockchain are transforming global finance — start here.
Frequently Asked Questions (FAQ)
Q: Is Hong Kong really open to cryptocurrency businesses?
A: Yes. Hong Kong maintains a proactive and regulated approach to crypto, offering a clear licensing framework through the SFC and supporting infrastructure like Cyberport to foster innovation.
Q: Are there tax benefits for crypto investors in Hong Kong?
A: Institutional investors such as hedge funds and family offices enjoy tax exemptions on virtual asset profits, making Hong Kong an attractive destination for professional crypto investment.
Q: How many crypto exchanges are licensed in Hong Kong?
A: As of early 2025, the SFC has granted full operational licenses to nine cryptocurrency exchanges, with more under review.
Q: What role does Web3 play in Hong Kong’s financial strategy?
A: Web3 is central to Hong Kong’s vision of becoming a smart financial hub. The government supports blockchain startups, invests in talent, and promotes real-world applications in payments, asset tokenization, and DeFi.
Q: Is AI being used in Hong Kong’s financial sector?
A: Yes. Hong Kong has implemented a dual-track AI policy for financial services — promoting innovation while enforcing ethical standards and risk management protocols.
Q: Can foreign companies operate crypto businesses in Hong Kong?
A: Absolutely. The licensing regime is open to both local and international firms, provided they meet strict compliance and anti-money laundering requirements.
Core Keywords
- Hong Kong crypto market
- Web3 innovation
- blockchain regulation
- AI and blockchain integration
- cryptocurrency licensing
- digital asset hub
- Cyberport Web3 ecosystem
- financial technology development
The Road Ahead
Hong Kong’s journey toward becoming a regional crypto leader is well underway. With strong government support, progressive policies, and a thriving innovation ecosystem, the city is uniquely positioned to bridge traditional finance with the decentralized future.
While challenges remain — including global regulatory divergence and technological risks — Hong Kong’s balanced approach offers a model others may follow. By prioritizing stability without sacrificing openness, the city continues to prove that it is not only open for business but ready to lead in the next era of finance.
👉 Stay ahead of the curve — see how leading markets are shaping the future of digital assets.
As Financial Secretary Chan concluded: “We are building a future where innovation thrives within a trusted framework — where technology serves people, markets grow responsibly, and Hong Kong remains at the forefront of financial evolution.”