“‘Anchor’ Web 3.0 Future Summit and RWA Research and Technology Achievements Release Conference”

In promoting the development of stablecoins, what should data governance and risk prevention focus on?

• First, lawyers should help issuers strictly comply with laws related to KYC/CDD/AML and data processing, with particular attention to the Stablecoin Ordinance that officially took effect on August 1. For example, the ordinance requires issuers to retain user data for at least five years.

• In Hong Kong, lawyers should help design data collection processes that comply with the Personal Data (Privacy) Ordinance (PDPO) and avoid excessive collection.

• Over time, after processing data so that it no longer contains personal data, one can reasonably avoid being subject to the PDPO’s regulatory oversight.

  
  

  What legal and compliance risks should Mainland Chinese companies be aware of when engaging in Web 3.0 technology and business cooperation in Hong Kong?

  
  

• Distinguishing cross-border regulatory regimes:

• Mainland China adopts relatively strict policies and regulations in the cryptocurrency field, whereas Hong Kong already has a relatively comprehensive legal framework for virtual assets. Therefore, when conducting Web 3.0 business in Hong Kong, attention must be paid to obtaining the necessary licenses and making required filings, while also avoiding violations of Mainland regulations (such as illegal business operations or illegal fundraising).

• Recommendation: When expanding virtual asset businesses across borders, Mainland enterprises may prioritize cooperation with licensed institutions in Hong Kong to mitigate compliance risks—for example, by partnering first with member companies of the Web 3.0 Standardization Association.

  
  

  What breakthrough directions might we see in future Web 3.0 supervisory innovation?

  
  

• From Hong Kong’s perspective, I believe Hong Kong can align with the leading Web 3.0 regulatory policies of the United States and Europe.

• One direction: leveraging AI to assist regulators with internal and administrative supervision, thereby creating a regulatory environment that is both appropriately stringent and flexible, conducive to the healthy development of the industry.

  
  

  How can Hong Kong’s Web 3.0 regulation effectively complement Mainland China’s laws and regulations?

  
  

• The two jurisdictions have complementary regulatory frameworks for cross-border activities involving virtual assets, RWA, and stablecoins between Mainland China and Hong Kong.

• Taking RWA as an example: if a Mainland-backed enterprise conducts tokenized financing by issuing RWA tokens in Hong Kong or overseas, it must comply with the regulations of both jurisdictions. For instance, when setting up separate onshore and offshore structures, it must establish or modify operating entities and execute RWA contracts in accordance with each jurisdiction’s admission and licensing requirements.

  
  

  Dr. Anthony Lai

  Managing Partner, M.C.A. Lai Solicitors LLP

  Provincial CPPCC Member

  Adjunct Professor, Chu Hai College (Hong Kong)

  Vice President, China Legal Professional Committee

  Director, Silk Road Economic Development Research Center