Hong Kong Legislator: The Hong Kong government must actively explore the innovative integration of Web3 and traditional finance, and should timely establish a legal framework for the circulation of RWA tokens.

Odaily Planet Daily News Hong Kong Civic Party Legislative Councilor Chan Chung-ni wrote an article titled "Empowering the Application Development of Web3.0 in the Financial Industry," pointing out that the Hong Kong government must vigorously develop infrastructure that can support the long-term development of Web3.0. Given the current deficiencies in privacy protection of mainstream public blockchain platforms, Hong Kong should support the research and development of a basic blockchain platform that is secure, privacy-protecting, efficient, cost-effective, energy-saving, compliant, modular, and globally oriented. Authorities need to invest more resources and technology to encourage scientific research and innovation and formulate policies and regulations to support the development of blockchain technology.

Secondly, digital identity, as an important bridge between Web3.0 and the physical world, suggests that the government accelerate the construction of a digital identity system and standards based on Hong Kong residents, gradually establish a set of applications for more widespread use of digital identity between public and private institutions, and promote widespread adoption across all sectors, such as incorporating digital identity into the "Smart Convenience" platform.

Furthermore, it is recommended to improve Hong Kong's regulatory framework in the field of encrypted digital Web3.0 to protect investor rights, promote market fairness and transparency. Monitor and alert the Web3.0 market for risks through technologies such as big data and artificial intelligence. Establish a Web3.0 industry committee to develop industry norms and standards and enhance training for practitioners.

At the same time, Hong Kong must actively explore the innovative combination of Web3.0 with traditional finance, such as data connectivity between government departments and banks, traditional financial payments and settlements, personal and corporate credit services, supply chain finance, etc. Hong Kong should also focus on and expedite the development of stablecoins denominated in Hong Kong dollars and collateralized with multiple assets, as well as the digitization and tokenization of real-world assets (RWA) as the core of digital asset business, such as bonds, funds, private loans, trade, real estate, carbon credit certificates, and precious metals, to promote the standardization of asset on-chain protocols and timely formulation of RWA token circulation legal systems to facilitate seamless integration, data sharing, and asset transfer between the traditional financial and virtual asset ecosystems. (Hong Kong Commercial Daily)