The Hong Kong Securities and Futures Commission draws new boundaries for Web3: starting from Compliance, advancing towards innovation.

OSL Group's Chief Business Officer Zhang Yinghua wrote an article discussing the latest statements from the Hong Kong Securities and Futures Commission regarding digital assets, as well as the future development direction of the industry (Background: OSL Group and the Solana Foundation announced a partnership to accelerate the compliance tokenization of real-world assets) (Additional background: OSL Global Exchange now supports USDT and USDC on the Solana network) *This article is a sponsored piece provided by OSL and does not represent the position of BlockTempo, nor is it investment advice, purchase, or sale suggestions. Please refer to the disclaimer at the end of the article. The Hong Kong Securities and Futures Commission recently released two regulatory updates regarding digital assets, which have garnered significant attention from the Web3 industry and traditional financial institution groups. First, on September 30, it released a “Supplementary Joint Circular on Virtual Asset-Related Activities of Intermediaries,” which further clarifies that the market must conduct digital asset-related businesses through licensed intermediaries recognized by the Commission. On October 17, Dr. Ye Zhiheng, Executive Director of the Intermediaries Department of the Hong Kong Securities and Futures Commission, also addressed investment funds at a seminar in Hong Kong and the Greater Bay Area, which is related to the digital and investor associations. This series of statements outlines a regulatory path for Hong Kong's digital asset industry characterized by “clear rules” and “encouraging innovation,” responding to the core market concern: what path should be taken to build a digital asset ecosystem that allows institutional investors to participate widely and safely? The answer lies in: constructing a robust innovative ecosystem under a clear compliance framework. Clear licensed pathways: Market fluctuations highlight the importance of compliance The entry of institutional funds has always been predicated on regulatory compliance. The supplementary circular issued on September 30 clarifies the compliance requirements for specific businesses such as OTC trading and staking of digital assets based on the existing regulatory framework. The significance of this move is to provide a clear compliance pathway for certain business activities that were previously outside the regulatory system, bringing them into a transparent, supervised licensed framework. On October 11, the global cryptocurrency market experienced severe fluctuations again, which also highlighted the value of the regulatory framework: in a volatile market, investor asset security and counterparty risk become primary concerns. The clarity of regulation also raises higher expectations for market service providers. For instance, OSL Group's “institutional-grade one-stop trading and custody solutions” aim to help institutions participate in the digital asset market more safely and efficiently while meeting regulatory requirements, performing robustly during this market turbulence. The regulatory requirements from the Hong Kong Securities and Futures Commission provide clear guidance and safety guarantees needed for financial institutions that prioritize risk control to participate in the digital asset market. Supporting compliance innovation: Exploring the landing path of asset tokenization While clarifying existing rules, Hong Kong is also providing space for development in innovative areas, including the tokenization of real-world assets (RWA). The signals conveyed by the Hong Kong Securities and Futures Commission at the October seminar closely align with the earlier released “ASPIRe” strategic roadmap, particularly emphasizing the establishment of partnerships with the industry through communication, reflecting the regulatory agency's open approach to guiding compliance innovation. RWA is widely regarded as a crucial bridge connecting digital assets with the real economy. Among them, fund tokenization has become one of the earliest feasible application areas due to its high standardization and clear application scenarios. The proactive attitude of the Hong Kong Securities and Futures Commission not only provides valuable policy guidance for practitioners but also reflects Hong Kong's support for compliance innovation. As one of the earliest participants in building Hong Kong's compliant digital asset ecosystem, licensed institutions like OSL Group are also actively leveraging their accumulated expertise in compliance operation and technical security to provide professional solutions for the market's RWA innovation, aiming to help relevant projects land robustly within the compliance framework in areas such as asset evaluation, technical implementation, and custody services. From concept to practice: The industry's urgent need for in-depth dialogue The Hong Kong Securities and Futures Commission's steady promotion of a regulatory awareness that balances innovation exploration outlines the future landscape of the Hong Kong digital asset market: compliance will become the cornerstone of all businesses, while compliance innovations like tokenization will be one of the most promising growth engines. However, the clarity of the regulatory framework is just the first step. For market participants, the real challenge lies in how to establish mutual trust with regulatory authorities and transform potentially viable businesses into actual commercial growth by following the regulatory framework. In a volatile market environment, institutions need to establish clear compliance strategies and directions, which is one of the core issues the industry urgently needs to discuss collectively. At the Finternet 2025 Asia Digital Finance Summit supported by OSL Group and held in November, industry leaders and policy experts from around the world will explore the key challenges in the development of the digital asset industry and seek feasible solutions to advance the industry from conceptual construction to market practice. Future success will belong to those who can deeply understand compliance requirements while boldly embracing technological innovation. Achieving this goal requires the collaborative effort of the entire ecosystem to explore new growth opportunities in the market within the certainty of regulation, jointly seeking feasible development paths for the future of digital finance in Hong Kong and globally. Related reports: OSL Group officially completes acquisition of Indonesian licensed exchange Koinsayang OSL Group announces “full support” for the Hong Kong SAR government! Steadily promoting the development of financial technology. “Hong Kong Securities and Futures Commission outlines new boundaries for Web3: starting from compliance, advancing towards innovation” This article was first published in BlockTempo, the most influential blockchain news media.