Yao Wensong, CEO of ZA Bank, stated in a recent interview that ZA Bank is not only the first digital bank to open in Hong Kong, but also has the largest number of users and deposits among the eight licensed digital banks in Hong Kong by the end of 2023. Yao Wensong stated that ZA Bank has invested a lot of resources in supporting Hong Kong's Web3 ecosystem, and more than 100 of the over 200 Web3 companies in Cyberport have opened accounts with ZA Bank. He also stated that ZA Bank provides corresponding functions to support the services of the two licensed virtual asset trading platforms in Hong Kong, in order to cooperate with the future development of virtual assets.

1. As of July 25, BlackRock IBIT held more than 338,000 bitcoins, an increase of more than 1,092 bitcoins from the previous day.

On July 27th, according to a report from Hong Kong Wen Wei Po, Sit Li Kin Wah, chairman of the Hong Kong Wireless Technology Industry Association, stated that despite Hong Kong companies falling behind their Asian counterparts in the adoption of emerging technologies such as artificial intelligence/machine learning, augmented reality (AR)/virtual reality (VR)/mixed reality (MR), and blockchain, 85% of surveyed Hong Kong companies still plan to or have already adopted artificial intelligence, which is comparable to the 93% in other Asian regions but still slightly behind. In other aspects, the survey found that 21% of surveyed Hong Kong companies are developing blockchain/smart contracts/GameFi for the first time.

Hong Kong stock market data shows that as of the close of trading at 16:20 today, the turnover of 6 Hong Kong virtual asset ETFs was HKD 28.1091 million, including: Huaxia Bitcoin ETF (3042.HK) with a turnover of HKD 9.59 million, Huaxia Ethereum ETF (3046.HK) with a turnover of HKD 1.66 million, Jiashi Bitcoin ETF (3439.HK) with a turnover of HKD 3.02 million, Jiashi Ethereum ETF (3179.HK) with a turnover of HKD 4.25 million, Boshi HashKey Bitcoin ETF (3008.HK) with a turnover of HKD 9.01 million, and Boshi HashKey Ethereum ETF (3009.HK) with a turnover of HKD 0.5791 million.

Hong Kong Monetary Authority recently announced the list of participants in the stablecoin issuer sandbox, including JD Coin Chain, Circle Coin Innovation, Standard Chartered Bank, Anni Group, Hong Kong Telecom and other institutions. Research reports released by Zeng Shengjun, a researcher at the Greater Bay Area Financial Research Institute of the Shenzhen Branch of Bank of China, and Guan Zhenqiu, a researcher at the Hong Kong Financial Research Institute of Bank of China, analyzed that the Hong Kong dollar stablecoin can improve the efficiency and inclusiveness of the Hong Kong financial system. Its stability, free convertibility, high security, high open source and cross-border mobility can provide support for a wider range of financial innovations.

Hong Kong Legislative Council member Chan Chun-ying stated that the new productivity of Hong Kong's financial industry is currently mainly developed around digital and green themes. Regarding virtual assets, Hong Kong regulatory agencies should establish relevant trading platforms, stablecoin issuances, testing and operational mechanisms, capture digital development trends, and share relevant regulatory experience with the mainland. At the same time, Hong Kong's tokenized bond development is leading the world, and relevant product issuances, trading systems can be shared with the mainland or guide more mainland companies to issue, together meeting international market demand.

The virtual currency trading platform AAX will stop operating from mid-November 2022 due to system maintenance and updates. Over 300 customers were unable to retrieve nearly HKD 100 million in assets. After investigation by Hong Kong law enforcement agencies, it was discovered that someone had caused the platform to shut down through false information and illegal means. The main culprit had already fled Hong Kong with virtual currency wallets and private keys. After further investigation, a 39-year-old local man related to the case was identified and arrested upon his return to Hong Kong on the 18th. The arrested man has been temporarily charged with "theft" and the case will be heard in the Eastern District Court tomorrow (20th) morning. As of July 19th, law enforcement agencies have received a total of 890 reports from victims, involving a total amount of HKD 280 million.

Tiger Securities announced in mid-June this year that it has been approved to launch virtual asset trading services to Hong Kong retail investors. According to Kelvin Liu, Vice President of Engineering and Cryptocurrency at Tiger Securities, the platform currently allows users in Hong Kong to trade 18 types of cryptocurrencies, stocks, futures, US Treasury bonds, and the latest Bitcoin ETF, and has been actively trying to attract retail investors. The goal is to provide retail investors with the same diversified trading options as professional clients. Tiger Securities will continue to monitor the cryptocurrency market, look for promising new coins that meet its standards, and plan to expand its cryptocurrency products in the future, subject to regulatory approval and market conditions.

Hong Kong investors in virtual assets will not be subject to asset value-added tax, which is a very attractive point for global investors. For example, in Japan and Australia, although they have expanded the virtual asset market earlier than Hong Kong, they still need to pay asset value-added tax, which will be included in the comprehensive tax rate calculation. The comprehensive tax rates in Japan and Australia can be as high as 50% and 40% respectively. For investors, investment returns are of course the most important consideration, and Hong Kong's low tax system will attract more international investors to settle in Hong Kong.

Hong Kong Legislative Councilor Wu Chi-wai stated that to promote the development of Web3 and virtual assets in Hong Kong, the Legislative Council previously established a Web3 and Virtual Asset Development Subcommittee. It is now seeking opinions from the global industry on the theme of policy suggestions and future industry development directions. The proposals will be studied in detail, summarized, and submitted to the government through the Legislative Council platform. The global industry can provide opinions on the following themes to promote Hong Kong as a global Web3 center:Web3 policy:How to balance and promote Web3 basic technology, legal and regulatory frameworks;How to cooperate with the country to promote Hong Kong as a Web3 center connecting the world;The integration and improvement of artificial intelligence and Web3 technology and the regulatory system for perfecting artificial intelligence;Policy and regulatory suggestions for decentralized autonomous organizations (DAOs) to support and regulate the healthy development of DAOs in Hong Kong;How to cultivate and attract Web3 technology and financial innovation talents;Virtual asset:Proposed measures to promote the development of the virtual asset industry;How to strengthen protection for virtual asset investors and consumers, and enhance market confidence;The potential application scenarios and risks of stablecoins in Hong Kong, and the regulatory system to safeguard financial stability without hindering innovation;Explore the demand for professional custody services arising from the rise of virtual assets in Hong Kong, and study corresponding custody methods and regulatory measures.