Starting from November, Ouke Cloud Chain and Hong Kong's mainstream media Sing Tao Group have opened a Web3.0 security technology column. This column mainly outputs professional security compliance suggestions to Hong Kong practitioners, trading institutions, and regulatory agencies, aiming to promote Hong Kong's Web3 .0The industry moves toward safety and compliance.
Produced by Ouke Cloud Chain Research Institute
It has been seven years since "blockchain technology" was mentioned at the first Hong Kong Fintech Week in 2016. Different from the conquest of the "Seven Years' War" by the European powers, Hong Kong's attitude has always been to seek common ground while shelving differences, to work together, and to be open and inclusive. From the contents of previous conferences such as mainland linkage to last year's emphasis on breaking boundaries and issuing a powerful chapter of the Web3 Declaration, Hong Kong has been actively creating a more open, innovative and inclusive environment.
The new theme of this year’s conference can be seen as a signal of a change in mindset. From the initial exploration by all sectors of politics and business to the government's stance on building a comprehensive regulatory environment, to this year's people-oriented approach - moving towards the mainstream and better serving users. "Revolving around the theme of this year's Fintech Week, "New Definition of Fintech," the definition means the hope that technology will be used in the mainstream financial market and better serve the real economy," Hui Ching-yu, Secretary for Financial Services and the Treasury of Hong Kong, said during the meeting Said. The "mass adoption" view proposed by Ouke Cloud Chain Research Institute as early as the beginning of this year echoes it.
From the content of the conference, the author saw that the Hong Kong government is developing financial technology in the field of Web3, mainly adhering to the main logic of comprehensive supervision and top-down development of government-led infrastructure, and analyzed the following two specific development trends:
First, the regulatory gaze shifts from inside the venue to outside the venue:
During the meeting, Xu Zhengyu specifically mentioned that in terms of OTC (over-the-counter) supervision, the Hong Kong Monetary Authority is discussing regulatory guidelines for virtual asset custody services with banks to provide clear guidance and promote large-scale adoption in the industry. However, during the on-site investigation of Ouke Cloud Chain Research Institute, banks did not successfully carry out this business. The main reason was that they were worried that the anonymity and other technical characteristics of virtual assets would make it more difficult for banks to manage money laundering risks. In particular, banks pay more attention to the review of the source and compliance of funds during the warehousing process.
At the recent "LinkWeb 3.0 Security Salon" hosted by Ouke Cloud Chain and FT Chinese Network, Professor Lin Chen, Associate Vice President of the University of Hong Kong, said when teaching the stablecoin case, "When the stablecoin transfer is on the chain, its chain The data is both transparent and immutable.” Instead, transactions are put on the chain, and the transparency and integrity of data on the chain provide regulatory agencies with a more reliable data basis, thereby improving the efficiency and accuracy of supervision. Compliance technology solutions based on on-chain data provide round-the-clock coverage and provide automated reports to accelerate supervision and fill the gaps on and off the chain. The Onchain AML compliance technology solution launched by Ouke Cloud Chain came into being this year. Mr. Ren Yunan, Chairman of the Board of Directors and Chief Executive Officer of Ouke Cloud Chain, mentioned in the "High-end Viewpoint" column of FT Chinese website that Ouke Cloud Chain's Onchain AML chain anti-money laundering solution not only provides services for financial and regulatory agencies, but also "the entire industry" Stakeholders" provide incremental value.
As the industry develops, the scope of regulatory oversight is also expanding. Not only can compliance technology solutions create a "stable base" for the Web3 ecosystem, "With the improvement of Hong Kong supervision, the awareness of asset classes continues to improve, and the public's investment awareness and risk awareness increase, bad actors in the industry will be eliminated from the market. ." Ren Yunan said when he was a guest on the "High-end Viewpoint" column of FT Chinese website.
Second, the focus of financial technology in the Web3 field ranges from infrastructure to financial tools:
As of 2023, we have witnessed the rapid development of financial technology in the Web3 field, with many benchmark projects led by the Hong Kong government. For example, the world's first batch of government-issued tokenized green bonds was issued this year, the first phase of the "Digital Hong Kong Dollar" pilot program was completed, and the development of wholesale-level CBDC, the mBridge project, has entered the MVP development stage. For example, CBDC is currently mainly positioned at M0, which is an interest-free and high-energy currency. But based on the programmability of technology, CBDC will have the opportunity to become a broad M2. Such cutting-edge and national-level benchmark projects are also taking the lead in Hong Kong. In terms of tokenization of financial assets and stablecoins, regulatory discussions have already entered and follow-up operations at the regulatory level will soon be seen, reflecting the speed of Hong Kong.
Through these benchmark projects, we can see that in the Web3 field, financial technology is still led by the government and mainstream financial institutions in infrastructure projects, but the main focus of the industry is turning to financial instruments such as tokenization. The adoption of Web3 technology presents a trend from infrastructure to financial tools to serving the real economy. We can see that the adoption of technology is getting closer and closer to the needs of the market.
When Web3 entered the market, ease of use became one of the criteria for the market to pay for it. That is, it was time for each company to compete for strength rather than financing creativity. "With the liberalization of the market, it will help everyone distinguish the pros and cons of the industry," Mr. Ren Yunan said in the "High-end Viewpoint" column. "Including the problems and pain points currently faced by the industry, it is actually because there are some differences in the understanding of technology." When developing products, Ouke Cloud Chain takes multi-terminal users into consideration, and uses easy-to-use products to adapt to new technologies. Popularize it to help newcomers to the industry enter seamlessly and seamlessly connect the experiences of Web3 and Web2.
No matter how Web3 deepens its innovation in financial instruments, "since it is a business and assets based on the blockchain, we still have to return to the blockchain technology itself and make our contribution," said Mr. Ren Yunan.