October 2024 Community Updates

Hi OAX Community,

It’s been an exciting month in Hong Kong — Blocktober — filled with a series of blockchain events that highlight the city’s dynamic development in Web3 and AI. As the OAX Foundation, we’ve had the pleasure of attending several prominent events, including GameOn, Solana HackerHouse, FinTech Week, and more. As we wrap up this eventful month, we want to share our key takeaways, highlighting significant developments in the digital asset landscape.

FinTech Week: Policy Updates

Hong Kong’s FinTech Week served as a pivotal platform where financial institutions and innovative startups converged to discuss the future of both traditional finance (TradFi) and decentralized finance (DeFi). A significant highlight was the government’s ongoing commitment to support initiatives in AI and Web3.

Christopher Hui, the Secretary for Financial Services and the Treasury of the Government of the HKSAR, announced an ambitious new policy stance aimed at the responsible application of AI within the finance sector. This initiative not only encourages the integration of AI and Web3 into financial practices but also emphasizes risk mitigation to safeguard investors and consumers alike. Furthermore, Mr. Hui disclosed plans for a new law set to be enacted by the end of this year, which will extend Hong Kong’s tax concessions to a wider range of assets, including virtual assets, thereby enhancing the city’s attractiveness as a hub for digital innovation.

In addition, Eric Yip, Executive Director for Intermediaries at the Securities and Futures Commission (SFC), revealed that Hong Kong plans to fully license digital asset exchanges by the end of 2024. This regulatory move reflects a broader strategy to ensure these platforms adhere to robust standards, fostering a sustainable environment for innovation while enhancing consumer confidence.

It was invigorating to see industry leaders from both TradFi and DeFi, including prominent names like 1inch, Solana, Bank of China, Circle, HSBC, HKEX, Standard Chartered Bank, Tencent, and others, come together to share their visions for the FinTech landscape in Hong Kong.

Blocktober: Gaming to Unlock Web3 Adoption

Following last month’s TOKEN2049 in Singapore, the focus has shifted to Hong Kong this month. We witnessed a vibrant series of Web3 events, such as GameOn and Solana Hacker House, specifically targeting the gaming industry and developers in the region.

As Web3 adoption remains a key agenda, a common theme emerged: gaming is pivotal in driving user engagement and adoption. While the number of “GameFi” users is currently low compared to traditional gaming platforms, industry experts emphasized the need to create compelling games that prioritize enjoyment over financial speculation.

It was heartening to see game studios and esports sponsors actively exploring the integration of blockchain technology, although significant gaps in infrastructure for Web3 games remain, particularly concerning user onboarding challenges.

At the Solana Hacker House, they lasered in solving the onboarding friction. A major theme was the emphasis on mobile-first developments aimed at making Web3 more accessible. One notable project involving Jambo collaborating with the Aptos ecosystem has launched a Web3-native phone priced competitively at $99. This initiative aims to significantly enhance Web3 accessibility and education in emerging markets that stand to benefit the most. Other key topics discussed included the influence of meme culture and payment solutions, which have been identified as catalysts driving increased ecosystem usage in recent months. For more on Solana developments, read our previous blog.

Cyberport: Nurturing City Innovators

Cyberport continues to play a crucial role in nurturing local innovators. Last week, they hosted an investor forum that invited over 90 investors to match with startups, fostering an environment of collaboration and growth. While Cyberport’s commitment to supporting innovation is commendable, challenges persist—especially concerning the high costs associated with launching projects locally. Despite these hurdles, the establishment of a new Web3 accelerator demonstrates a proactive approach to support builders in our community, reflecting the government’s ongoing initiatives to increase funding for innovation.

A Shift in Focus to AI

Throughout these events, it has become evident that the spotlight is increasingly shifting towards AI. From heightened investor appetite to new project developments, AI is becoming an integral part of the narrative. For instance, Notifs, a digital asset portfolio tracker, has successfully integrated AI to generate personalized news content for its users since last year. Additionally, practical applications of AI, such as using it for AML screening and enhancing customer service has shown much demand from the financial sector. It’s fascinating to consider how the convergence of AI and Web3 will manifest innovative use cases that could reshape various industries.

Outlook

Looking ahead, we anticipate the introduction of policies that will support both Web3 and AI sectors. The city’s strategic vision includes inviting foreign investment, which will indirectly bolster local innovation and potentially attract international projects to Hong Kong. The OAX foundation believes Hong Kong now stands at this pivotal moment for innovation, the government’s proactive stance, coupled with community engagement and the attraction of international builders, positions the city well to becoming a digital asset hub.

Thank you for your continued support, and we wish you a Happy Halloween!

Disclaimer: The above is an opinion piece written by an authorized author, but in no way represents the official standpoint of OAX Foundation Limited, nor should it be meant to serve as investment advice.