Transcript: Hong Kong Legislative Council Member Yau Tat Kwan Discusses Web3 Regulation and Development

As a representative of Web3 development, Hong Kong Legislative Council member Yau Tat-kuen shared his views on Hong Kong's cryptocurrency policies, Web3 regulation, and future development directions in this in-depth dialogue. Here are the key points of the conversation:

Personal Background and Journey into Cryptocurrency

Chiu Da-gen introduced himself as a member of the seventh Hong Kong Legislative Council and shared his extensive experience in technology venture capital. He first encountered the cryptocurrency field around 2014-2015, during which he was mainly in an observational state. He held a conservative attitude towards early projects such as ICOs but has always kept an eye on the development of blockchain technology.

The Evolution of Hong Kong's Regulatory Policies

Qiu Dagen believes that the shift in Hong Kong's regulatory policies is a natural process. In the early stages, a more inclusive attitude was adopted, allowing the industry to develop naturally. As the industry grew in scale, thoughts began to turn towards how to manage and establish clear rules. He emphasized that Hong Kong has the capability to provide a positive driving force for this industry, helping it to move towards the mainstream.

Response to the Doubts about "Tight Policies"

In response to societal doubts about Hong Kong's policies being "too strict," Qiu Dagen expressed support for the development strategy of "seeking progress while maintaining stability." He believes that for the industry to develop sustainably in the long term, it is necessary to advance steadily, avoiding a market collapse due to insufficient regulation, which would affect Hong Kong's financial brand. At the same time, he also stated that the regulatory agencies actually have a fast approval process for mature products.

Comparison between Hong Kong and Singapore

Qiu Dagen believes that one should not overly focus on policy changes in other regions, but rather concentrate on how to expand the entire Web3 market. He stated that Hong Kong has the opportunity to develop new products and markets, rather than being limited to the existing framework. Hong Kong's positioning as an international financial center gives it a unique advantage.

The Development Prospects of Stablecoins

Qiu Dagen is optimistic about the market prospects of stablecoins and believes that the Hong Kong dollar stablecoin may have certain advantages. He emphasizes that the focus is on expanding new user groups rather than competing for existing market share.

Attitude towards DeFi

Currently, there is no discussion in Hong Kong about banning DeFi, nor is there such a policy direction. Qiu Dageng stated that they will decide whether some form of regulation is needed based on market demand.

"Front Shop, Back Factory" Model and the Role of Hong Kong

Qiu Dagen believes that Hong Kong has advantages in financial professionals, which can form a good complement with the technical teams from the mainland. He emphasizes that Hong Kong should maintain an open attitude towards the international market.

The Prospects of Stock Tokenization

Qiu Dagen believes that this requires an interactive process and depends on the overall market trends. He hopes that in the future, various assets including stocks can be traded on-chain, but this requires time and technological advancements.

The Strategic Significance of Hong Kong's Development of Web3

Qiu Dagen emphasized that Hong Kong and the Mainland have a complementary rather than competitive relationship. Hong Kong should become a window for Mainland technology, helping Chinese enterprises establish reliable standards internationally. He believes that Hong Kong needs to identify its own positioning and contribute to the national science and technology development strategy.