On Monday, the Hong Kong Licenced Virtual Assets Association (HKLVAA) and Web3 Harbour were introduced as the two new organisations representing the Web3 sector in Hong Kong.
At the Radical Finance Asia conference, they made their debut as a collaborative effort to advance the digital asset sector and the distributed web.
Companies authorised to engage in virtual asset operations in Hong Kong by the Securities and Futures Commission (SFC) are the first members of the HKLVAA.
As part of its plan to become a worldwide centre for digital assets, Hong Kong has adopted new regulations for the cryptocurrency business, which will go into effect on June 1. This move comes as the United States pursues cases against cryptocurrency exchanges throughout the world.
Thailand and Malaysia have introduced stricter laws, while Singapore has issued a caution to its citizens not to engage in bitcoin trading. Meanwhile, India has instituted one of the most onerous tax regimes on the asset class in order to deter investment in it. As a result of these challenges, several digital asset firms have looked to more hospitable countries, such as Hong Kong.
As a member of the founding boards of both organisations, Lawrence Chu, co-founder and Chairman of Venture Smart Financial Holdings, the parent company of a Hong Kong-based virtual asset management, said that the HKLVAA represents the interests of virtual asset businesses licenced, or seeking licencing, in Hong Kong.
“While HKLVAA and Web3 Harbour have different kinds of members and will use different methods to meet their needs, they both put knowledge sharing and clear rules at the top of their lists when trying to speed up the development and use of Web3 technologies in Hong Kong,” Chu said.
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