Long-distance Runners in Hong Kong’s Web3 Space: Endurance Over Speed

Recently, discussions about the development of Web3 in Hong Kong and a well-known group have attracted a lot of attention on social media. In the face of various questions such as “layoffs”, “insufficient funds”, and “compliance does not make money”, the agency accepted an exclusive interview with professional media to respond to the concerns of the outside world. In this conversation, we see the story of an industry builder who embraces long-termism.

Response to Recent Controversies

When asked about the recent discussions, the agency stated: “Recent comments surrounding the company have indeed sparked quite a bit of discussion, and many friends have come to inquire about the situation. First of all, thank you all for your concern. As a famous saying goes: ‘Defamation, in itself, is a form of admiration.’ We are willing to take this opportunity to have an open exchange with everyone.”

The Time Perspective of Web3 Development in Hong Kong

In response to the viewpoint that “Web3 development in Hong Kong is too slow” and even “missing opportunities”, the organization offered its own perspective:

“We understand everyone’s eagerness to see results as soon as possible, especially against the backdrop of significant fluctuations in the global virtual asset market. However, it must be emphasized that the institutional development of Web3 is a marathon, not a sprint.”

Since the Hong Kong Special Administrative Region government issued the “Virtual Asset Policy Declaration” in 2022, Hong Kong has begun to systematically build a compliance framework, including legislation, licensing systems, market mechanisms, and investor protection, advancing step by step. The voices of doubt are actually “using a stopwatch to measure the results of a marathon.”

The agency recalled that when the 2022 policy statement was first issued, not many people believed that Hong Kong could develop into an international hub for virtual assets. When the first Web3 carnival was held in early 2023, it was also met with skepticism. However, just three days before the opening of the event, direct flights from Singapore to Hong Kong were hard to come by, and many people had to transit from Seoul, Tokyo, Shenzhen and Guangzhou to Hong Kong. Today, Hong Kong hosts three 10,000-person Web3 conferences a year, representing the Web3 industry in China and the United States, a phenomenon reminiscent of the Hong Kong proverb: “No one ploughs the thin field, and there are people fighting for it!” "

Unique Advantages of Hong Kong’s Web3 Development Path

Compared to regions like the United States, South Korea, and Dubai, Hong Kong is indeed not the “fastest”, but the institution believes this is not a disadvantage. Some regions adopt a radical model of “first release, then manage”, which, although it attracts traffic in the early stages, also brings issues such as regulatory uncertainty and asset security risks.

In contrast, Hong Kong chooses the route of “building systems while guiding the ecosystem”, based on internationally accepted compliance standards, to create a sustainable financial market. As the world’s third-largest international financial center, Hong Kong has a top-tier legal system, financial regulatory capabilities, and institutional capital resources.

“What real builders value is not the speed of the starting line, but the safety and rewards of the finish line.” The agency said. As for the question of “Hong Kong’s narrow market”, the fact is that Hong Kong has a large number of high-net-worth individuals and strong funds including family offices, listed companies, and financial institutions, which are all resources with their own compliance requirements.

Compliance and Insurance: Building a Foundation of Trust

The institution’s exchange insurance limit exceeded US$1 billion, becoming the first case in the industry, fully demonstrating the market’s trust in its “security + compliance”. The agency revealed that the initial insurance amount was only about 100 million US dollars, and through continuous improvement of the risk control process, optimization of the asset management system and strengthening compliance audits, the insurance ability has been highly recognized by the insurance institution, and the scale of insurance coverage has increased by more than 10 times.

In response to the criticism of “compliance not being profitable,” the agency pointed out that this is a common misunderstanding: “The cost of compliance has never been the biggest issue; the key is whether compliance can be transformed into trust dividends and economies of scale.”

According to reports, the agency’s Hong Kong Stock Exchange achieved a break-even point in less than two years, which is quite rare among globally compliant exchanges. They believe that conducting compliant business according to regulations should not be a reason for questioning, and that the era of “barbaric growth” will eventually come to an end; compliance is the true passport for Web3 to integrate into the mainstream financial system.

The transformation of compliance capabilities into market advantages requires a chain reaction process of “regulatory approval acquisition → trust capital accumulation → ecological network construction → commercial value release.” The agency’s over-the-counter bulk trading (OPT) business is experiencing explosive growth, with trading volume in the first quarter of 2025 increasing by over 400% compared to the same period last year, setting a historical record.

Clarification on Layoffs and Financial Status

In response to rumours of “large-scale layoffs” and “insufficient funding”, the agency acknowledged that it was undergoing strategic adjustments and organizational upgrades, involving personnel optimization, but stressed that this was to increase talent density and better support the group’s strategic layout based on Hong Kong and global development. The talent adjustment ratio is between 10% and 20%, mainly involving four types of personnel: employees with inconsistent concepts, employees whose performance does not meet the standard, employees who can be replaced by AI technology, and employees who are selected in both directions due to job changes brought about by strategic adjustment and business focus.

The organization revealed that the global workforce has increased from over 500 at the end of last year to more than 600 currently, with an annual employee turnover rate maintained below 15%. It is currently accelerating the expansion of rapidly growing business lines such as over-the-counter trading and on-chain services, continuously recruiting top talent globally.

Regarding the financial situation, the institution clearly stated that it “is not short of money.” Its shareholders have strong financial power, especially the major shareholder who has provided hundreds of millions of dollars in funding support over the past few years and has committed to continue being the most solid “logistics minister.” The Hong Kong Stock Exchange has achieved a balance between income and expenditure, with asset management and infrastructure businesses consistently being profitable. The group continues to seek external financing for further business expansion, including promoting asset tokenization, applying for new market licenses, and establishing new compliant exchanges. The Middle East station opened in May this year, and applications for licenses in Europe and other regions are also ongoing.

Positioning and Value of Ecological Tokens

Regarding the controversy over the lack of upward momentum of ecological tokens, the agency said that its ecological tokens are not designed for “short-term hype”, but are rooted in the construction of an enabling compliance ecosystem. It is one-sided to place it in the assessment framework of “monthly ups and downs”. They focus on building and improving the entire ecosystem, enhancing the long-term value of the token by promoting ecological development and innovation, while emphasizing that there will be no price manipulation, and the positioning of the token is the core incentive mechanism of the entire ecological platform.

The Relationship Between Compliance and Decentralization

Regarding the question of whether compliance and decentralization are inherently opposed, the institution provided a unique insight:

"Decentralization is a technical architecture, and compliance is a market system, and there is no contradiction between the two. In order for Web3 to truly impact the real economy and enter the mainstream financial world, it must have institutional support, legal protection and regulation. Otherwise, the scale of users, capital volume, and ecological complexity will not be able to support it. "

In their view, the real Web3 is not about “de-regulation”, but rather “new governance”. Compliance is a bridge, not a ceiling.

Future Strategic Focus

The organization stated that it is at the starting point of the “second growth curve” and will focus on several directions in the future:

• Infrastructure: Promote the implementation of on-chain infrastructure and facilitate asset tokenization.
• International Expansion: The Middle East station is now operational, and licenses are being applied for in Europe and other potential markets.
• Deepening Trading Business: Over-the-counter trading, options, wealth management, and professional services will be key focus areas.
• Ecological Construction: Strengthen token incentive mechanisms, develop on-chain tools, introduce developer communities

“We have been preparing for this for a long time and will continue to adhere to the patient investment of ‘a ten-year period.’” said the institution.

Long-term Prospects for Web3 Development in Hong Kong

At the end of the interview, the agency expressed long-term confidence in the development of Web3 in Hong Kong: "We take a ten-year period! We have always believed that the success or defeat of long-distance running ultimately depends on endurance and strength, not speed at the start. Don’t be in a hurry, the long run has just begun. Hong Kong is very good! We’re pretty good too! Fighting! "