PwC and Web3 Harbour outline five enablers to drive decentralized finance

In an effort to accelerate the development of blockchain infrastructure and position Hong Kong as a hub for decentralized finance, industry association Web3 Harbour, in collaboration with PwC Hong Kong, has released a comprehensive report titled the “Hong Kong Web3 Blueprint.” The document outlines a strategic roadmap focused on mobilizing private sector involvement to advance Web3 technologies in the city.

The blueprint emphasizes the transformative potential of decentralization, particularly its ability to enhance transparency, security, and user empowerment. It identifies five critical enablers that are essential to Web3 growth: talent, market infrastructure, industry standards, regulation, and financial investment. These foundational pillars are expected to drive innovation in sectors such as open finance, trade finance, capital markets, asset management, and carbon credit systems.

Formulated with contributions from Web3 Harbour members and broader industry stakeholders, the report serves primarily as guidance for the private sector, although it encourages public-private collaboration. Gary Liu, chairman of Web3 Harbour, highlighted the importance of strategic focus from private entities to ensure that decentralized technologies become embedded within Hong Kong’s financial infrastructure.

The report coincides with a wave of regulatory progress in the city. Notably, Hong Kong’s new stablecoin ordinance was passed recently and is scheduled to be implemented in August. This legislative move mirrors parallel efforts in the United States, where the Senate approved the Genius Act, underscoring the growing importance of stablecoins as key sources of liquidity for tokenized financial assets.

PwC Hong Kong partner and digital assets leader Peter Brewin, one of the report’s co-authors, noted that Hong Kong’s approach to stablecoins differs from that of the United States by being more inclusive and multi-currency in nature. This flexibility, according to Brewin, has the potential to enhance trade linkages between China, the broader South Asian region, and countries involved in the Belt and Road Initiative.

To further the goals set out in the blueprint, five focused working groups will be established starting in August. These groups will concentrate on stablecoins, fund management, virtual asset trading platforms (VATPs), legal and compliance frameworks, and custody and over-the-counter (OTC) trading mechanisms.

While the blueprint deliberately avoids deep exploration of mainstream cryptocurrencies such as bitcoin, the authors explained that this choice reflects a broader intent to emphasize decentralized technology as foundational market infrastructure rather than treating crypto purely as an investment class. Nevertheless, Liu acknowledged the vital role that native cryptocurrencies play in securing public blockchains, reinforcing their trustworthiness through token value.

Despite optimism surrounding recent progress, Hong Kong’s regulatory framework has faced criticism for being slow and costly, particularly in its licensing process for cryptocurrency exchanges. As of now, the Securities and Futures Commission (SFC) has granted licenses to 11 VATPs. Questions remain about how swiftly the Hong Kong Monetary Authority (HKMA) will begin approving stablecoin issuers once the new law comes into force, though Liu indicated that approvals are expected in the near future.

Beyond regulatory matters, the blueprint calls for stronger government involvement in talent development through accelerators, internship programs, and educational initiatives. It also advocates for innovations like regulatory passporting, which would allow qualified overseas service providers to operate in Hong Kong under streamlined compliance protocols.

Both Liu and Brewin emphasized the need for Hong Kong to act decisively. They argued that first-mover advantages could only be realized if the city took bold steps to foster a thriving Web3 ecosystem, balancing risk with forward-thinking policy and proactive industry engagement.