Time flies, and 2024 has come to an end. In accordance with international practice, it is time to review the industry progress in the past year.

This year, compliance has always been the main theme of the development of Web3.0. From the advancement of Hong Kong's virtual asset service provider (VASP) license, stable currency and other regulatory systems, to the exploration of RWA financing by mainland enterprises, to the cross-border application testing of digital renminbi, interaction with the market continues to promote the standardization process of the Web3.0 industry .

Next, Lawyer Mankiw will review the hot events and trends of the year around the compliance keywords in 2024.

Compliance and openness, the rise of Asia's Web3 bridgehead

In 2024, Web3.0 will be good The top priority is Hong Kong’s compliance and opening up. With the Virtual Asset Service Provider (VASP) license as the core, it not only brings clear supervision to the entire Chinese market, but also comprehensively promotes compliance and opening up, attracts the influx of global capital and enterprises, and gradually establishes Hong Kong as Asia’s crypto asset hub. status.

In 2024, virtual asset trading platforms including HashKey Exchange, OSL, HKVAX, HKbitEX, Accumulus, DFXLabs and EX.IO will be approved and officially launched in Hong Kong The opening of trading for retail investors marks the maturity of the compliance system of Hong Kong’s virtual asset market. At the same time, Hong Kong regulators have further clarified compliance boundaries, and have successively introduced regulatory details for stablecoin issuers, custody service providers, OTC and other subdivisions to ensure market security and transparency.

These measures not only enhance the credibility of Hong Kong’s digital asset market, but also attract two-way inflows of capital and enterprises. As of November 2024, Hong Kong Cyberport has gathered more than 270 Web3 concept companies, with a cumulative financing scale of over HK$400 million. The BTC spot ETF launched in the first half of this year has achieved a net inflow of nearly US$500 million. In addition, Hong Kong also actively holds various Web3 events, attracting participation from global industry players. For example, the Hong Kong Fintech Week held in October this year attracted more than 500 exhibitors and tens of thousands of participants.

As of writing, the Web3.0 projects still underway in Hong Kong include the Ensemble Sandbox Project, the e-HKD+ Project, etc. At the same time, there are more virtual resourcesThe real estate trading platform may apply for or wait for approval. As the Web3 bridgehead in Asia, Hong Kong is gradually opening up the compliant virtual asset market in a leading and market-driven manner. In the future, with the coordinated advancement of supervision and technology, Hong Kong is expected to continue to lead in Web3 compliance innovation and provide demonstration and reference for other regions.

Dual-track exploration, ban on transactions and property protection in parallel

In 2024, the mainland judicial system will The position on virtual currency supervision and legal application has been further clarified. In accordance with the spirit of the "924 Document", local courts have delineated legal boundaries for the circulation and use of virtual currencies, and at the same time gradually recognized their economic value in property disputes.

In trial practice, courts across the country generally emphasize that virtual currencies must not be used as financing, payment tools or trading media. For example, the Shenzhen court ruled that payment of wages with virtual currency was invalid; the Xiangyin court ruled that the use of virtual currency to pay debts was invalid. These cases further consolidate the positioning of virtual currencies as “prohibited from circulation” under the mainland legal framework.

At the same time, some cases also show the flexibility of the judicial system in the protection of property rights. In a financing contract dispute case, the Shanghai Higher People's Court clearly determined that virtual currency has property attributes and can be protected by law as property rights and interests. In addition, in many previous cases of currency theft, the judge characterized the crime based on property theft rather than the crime of illegally obtaining computer data, which further reflects the identification of the property attributes of virtual currencies in judicial practice.

This series of cases not only provides a clearer basis for the legal application of virtual currency, but also emphasizes its circulation restrictions and investment risks.

Support, blockchain technology accelerates implementation

In sharp contrast with virtual currency regulation Yes, mainland China maintains an active support and promotion attitude towards blockchain technology and related applications. For example, at the second meeting of the 14th National Committee of the Chinese People’s Political Consultative Conference, held from March 4 to 10, 2024, the widespread application of blockchain technology was listed as a key issue as a technological innovation. During the meeting, it was proposed to strengthen basic research on blockchain, enhance independent innovation capabilities, and support its wide application in key fields such as finance, logistics, and energy.

Echoing this is the support introduced by various places. For example, on February 23, the Hangzhou Municipal Commerce Bureau formulated and announced the "Hangzhou City Promotes Digital Trade to Strengthen the City" three-year action planPlan Implementation Plan (Draft for Comments)", which mentioned that it will guide the development of new business formats such as the metaverse, digital twins, and digital collections, and develop digital product trade such as digital media and digital publishing; on March 22, Shandong Province Industry and Information Technology The Department released "Shandong Provincial Blockchain Technology Innovation and Industrial Development Action Plan (2024-2025)", which mentions: Integrating and applying blockchain, big data, metaverse and other technologies to help develop digital intangible cultural heritage, digital collections, digital fashion toys, etc. New cultural and creative products.

At the same time, the promotion of digital RMB (e-CNY) continues to accelerate, especially in the fields of cross-border payments and wholesale settlement. In February, Shanghai issued the "Implementation Plan for Shanghai to Implement the "Overall Plan for Comprehensively Aligning with International High-Standard Economic and Trade Rules to Promote High-level Institutional Opening of the (Shanghai) Pilot Free Trade Zone", proposing to promote the digital renminbi pilot in an orderly manner and expand its application. Scenario; In November, Shanghai held a deployment meeting for the digital renminbi pilot application and formulated a new round of action plans. In addition, the pilot scope of digital renminbi in Hong Kong and Macau has been further expanded, and the scale of cross-border transactions has steadily increased, becoming an important part of Web3.0 infrastructure.

On the whole, mainland China’s support for blockchain technology and its applications in 2024 will not only promote the construction of digital financial infrastructure, but also provide support for the Web3.0 ecosystem. Provides a new compliance development path. In future development, these innovative applications will continue to deepen, laying the foundation for the market's digital upgrade and international competitiveness.

RWA, a new paradigm for corporate cross-border financing

2024, the tokenization of real assets (RWA) has gradually moved from concept to implementation and has become one of the core trends in the Web3.0 industry. In this wave, companies have also begun to explore compliant cross-border financing models, providing new solutions for the integration of traditional assets and the digital economy.

In August 2024, Ant Chain and Langxin Group jointly launched the new energy charging pile RWA project and successfully completed a financing of 100 million yuan, providing a platform for traditional assets and The convergence of the digital economy has opened up new compliance paths. Subsequently, at the Hong Kong Fintech Week in October, Ant Chain officially launched the RWA infrastructure "Two Chains and One Bridge" cross-border platform, focusing on the tokenization of traditional assets such as real estate, bills and supply chain finance, and promoting the cross-border circulation of assets. Standardization and compliance building.

Hong Kong is the first to test the waters and explore the compliance path of RWA. Includes e-HKD pilot project and Ensemble sandboxA number of initiatives, including the plan, are gradually improving the compliance standards of the RWA industry and providing security guarantees for cross-border transactions. In contrast, although the mainland has not yet issued a regulation specifically targeting RWA, it has laid the foundation for blockchain technology and digital financial infrastructure construction. Coupled with Hong Kong's cutting-edge exploration in the field of RWA, it has provided opportunities for mainland enterprises to participate in the offshore market. This trend creates conditions.

With the continuous improvement of the regulatory framework and the expansion of cross-border application scenarios, RWA may become an important tool for corporate digital financing and global asset allocation in the future.

Encryption goes overseas, looking for new ways to participate in compliance

In 2024, in the global Web3. 0 Against the background of rapid industry development, companies are facing a strict regulatory environment and are gradually turning their attention to Hong Kong and even overseas markets to explore new paths for compliance participation. In particular, Hong Kong's openness, mature regulatory system and homologous cultural system have undoubtedly become the most attractive choice. At the same time, places in Europe such as Malta, Asia such as Thailand, and the Middle East and the United Arab Emirates have also become important choices for enterprises to deploy Web3.0 due to their flexible finance and open digital economic environment.

However, going overseas does not mean avoiding supervision. Instead, companies need to pay more attention to compliance requirements, from setting up legal structures to cross-border capital flows, to ensure that they are within the legal framework. Achieve global operations within the company. For example, offshore funds, digital asset custody platforms and other tools can be used flexibly within the permitted scope to gradually explore feasible ways to participate in the digital economy.

Mankiw Lawyer Summary

In 2024, the Web3.0 industry will undergo adjustment and market innovation The trend of compliance is gradually showing. From the guidance of Hong Kong’s VASP license system, to the testing of the RWA cross-border asset management platform, to the expansion of the boundaries of crypto overseas, these keywords not only outline the outline of Web3.0 compliance development, but also provide opportunities for further evolution in the future. Reference.

For enterprises, compliance is the basic prerequisite for embracing the Web3.0 market, and cross-border layout, technological innovation and communication are key breakthroughs. In the context of accelerating global competition, how to flexibly deploy within the compliance framework and seize market opportunities will become a core issue that enterprises must solve.

As a Web3.0 law firm, Mankiw Lawyers will continue to pay attention to the dynamics and development of the Web3.0 industry and provide services for enterprisesProvide professional compliance consulting and legal services to help enterprises move forward steadily in the new era of Web3.0.