Ivan Ivanov, global CEO of WOW Summit, said this innovation is driven by strong regulatory policies and the status as a special economic zone of Hong Kong. The special framework of Hong Kong allows it to explore digital asset innovation more freely.

Sound regulatory system of Hong Kong creates an attractive environment for investors, allowing them to experience the advantages of cutting-edge financial technologies without having to worry about losing money in risky investments without legal recourse.

In October 2024, Financial Services and the Treasury Bureau of Hong Kong (FSTB) set out ground rules for artificial intelligence in the financial sector to mitigate the risks of artificial intelligence while promoting its integration with existing systems.

The Hong Kong Monetary Authority (HKMA) also announced Project Ensemble in October 2024. The project is jointly carried out by the HKMA, the Central Bank of Brazil and the Bank of Thailand to explore cross-border tokenized settlement between the three countries.

Cyberport Web3 Network of Hong Kong is a government-run business hub that promotes digital asset innovation and currently hosts more than 270 blockchain companies. In the past 17 months alone, more than 120 companies have been added to the Cyberport network.

In November 2024, ZA Bank, the largest digital bank of Hong Kong, launched retail cryptocurrency trading for its customers. The Hong Kong government has also proposed exempting cryptocurrencies held by institutional investors from capital gains to encourage investment.