In an exclusive interview with Blockchain Reporter, Ivan Ivanov, the Global CEO of WOW Summit, delves into Hong Kong’s meteoric rise as a global crypto hub. Ivanov shares his insights on the region’s progressive regulatory framework, its role in fostering innovation, and the WOW Summit’s contribution to bridging Web2 and Web3 ecosystems. From the impact of tax incentives to the introduction of a stablecoin regulatory framework, Ivanov sheds light on the opportunities and challenges that lie ahead for Hong Kong’s crypto community.
Q1. What factors drive Hong Kong’s rise as a global crypto hub, and how do you compare it to the US and Singapore?
Hong Kong is swiftly shaping itself as a global leader in the crypto world, thanks in large part to its regulatory approach. The administration has established an appropriate balance between building innovation and ensuring financial stability. The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) are taking proactive steps to create a supportive environment for crypto businesses while keeping investor protection in mind.
When comparing Hong Kong to the US and Singapore, some obvious distinctions come up. The United States is dealing with fragmented rules that often hinder progress, but Hong Kong has implemented its licensing procedures to provide clarity and efficiency to crypto businesses. Singapore also offers a supportive regulatory environment, but it does not have the same access to Mainland China and Western World as Hong Kong.
Q2. How has the WOW Summit contributed to Hong Kong’s commitment to regulatory stability and tax incentives as a global crypto hub?
Well, first of all, the WOW Summit helps shape conversations among industry leaders, innovators, and regulators. Our job is to bring everyone to the table and highlight successful global examples at our events, which can inspire local regulators to follow best practices.
At the Summit, we highlighted how Hong Kong’s tax-friendly policies are turning heads and sparking excitement about its growing reputation as a crypto-friendly destination. Our close collaboration with Invest Hong Kong, the government department responsible for foreign investment attraction, reflects a shared ambition: to position Hong Kong as the go-to hub for the crypto industry.
Q3. As a Hong Kong resident, how would you describe its crypto-friendly jurisdiction, and what unique perspective do you bring as the Global CEO of WOW Summit?
I’ve lived in Hong Kong since 2016, and I’ve witnessed several cycles in the crypto space – from the ICO craze in 2017 to the current bullish sentiment. What sticks out is how open the local government is to collaborating with the industry. They actively work with stakeholders, taking input from businesses, associations, and communities to make sure the regulations they develop are fair and forward-thinking.
My perspective is based on years of experience working in international business development. I’m passionate about bridging markets and building cross-border collaborations – it’s essential for driving growth in such a dynamic industry. Our goal is to bring global perspectives to the table and ensure the crypto ecosystem thrives sustainably in the long run.
Q4. What makes Hong Kong a more predictable and attractive environment for Web3 innovation, especially amid renewed confidence in the US after Trump’s reelection?
First, Hong Kong stands out because of its consistency. Unlike the US, where regulatory changes often mirror political shifts, Hong Kong has a stable and predictable framework that businesses can rely on, and this definitely attracts Web3 companies looking to plan long-term.
Second, the city boasts strong technological infrastructure and cultural diversity, which makes it a perfect hub for Eastern and Western tech ecosystems. Paired with clear regulations, these factors make Hong Kong a uniquely appealing location for Web3 innovation.
Q5. What is the role of the WOW Summit in catalyzing innovation and partnerships between Web2 and Web3 ecosystems, especially in Hong Kong?
At the WOW Summit, we see ourselves as connectors. Our events bring together leaders from Web2 and Web3 to share ideas, collaborate, and build partnerships that drive progress. We also actively engage with big organizations, banks, and institutions to showcase how blockchain could be implemented in their fintech systems and how effectively this technology works right now.
A key element of every edition of WOW Summit is our startup competition, where we connect promising startups with a network of venture capitalists. This approach promotes investment in the next wave of blockchain innovation while also bridging ecosystem gaps.
Q6. What are the biggest challenges the crypto industry faces in Hong Kong, and how can they be addressed?
The biggest challenge is speed. Hong Kong can be slow and cautious, especially when it comes to traditional banking and finance. For example, it remains difficult for Web3 companies to get bank accounts, though this is increasingly improving. Similarly, regulators have taken a measured approach – only three VATP licenses for retail crypto trading have been issued in the past two years, but we’re optimistic about seeing more progress soon.
Another issue is competing with other regions. As places like Dubai ramp up their efforts to attract crypto businesses, Hong Kong needs to continually showcase its distinct advantages and stay ahead in this fast-paced industry.
Q7. What opportunities for the crypto community do you see for growth and development in Hong Kong in the future?
The opportunities are massive. The regulatory environment becomes more stable, and I expect to see a surge in institutional investment, which could help projects secure the funding they need. The impending stablecoin laws, for example, might create totally new opportunities and strengthen Hong Kong’s position as a leader in the crypto space.
Beyond finance, blockchain has enormous potential in areas like supply chain management, healthcare, and others.
Q8. What is your view on the potential impact of Hong Kong’s introduction of a stablecoin regulatory framework, and how do events like WOW Summit bring these frameworks to global discussions?
A stablecoin regulatory framework will bring much-needed clarity to the market. It will boost confidence among both retail and institutional investors, making stablecoins more accessible and extensively used. Hong Kong has already launched a sandbox for stablecoin issuers, and three companies are currently participating. It’s a great start.
At the WOW Summit, we make it a priority to include stablecoin regulations as a key topic. Bringing together local issuers, regulators, and international experts, we encourage debates that will keep Hong Kong at the forefront of these trends.
Q9. How has the WOW Summit facilitated collaboration between Asia and Western crypto ecosystems to drive global innovation?
One of WOW Summit’s strengths is connecting the East and the West. We bring leaders from various regions together, thus helping secure partnerships that are mutually beneficial. During our events, we encourage the sharing of insights on trends, technology, and regulations – this cross-pollination of ideas is essential for the industry.
Our international footprint, with events in Dubai, Lisbon, Hong Kong, and Bangkok, has allowed us to build a truly global community. And this reach is what makes WOW Summit a platform for genuine cooperation.
Q10. How do initiatives like the Belt and Road Forum align with the vision of the WOW Summit in fostering international blockchain collaborations?
The Belt and Road Forum is in perfect accord with what we do at WOW Summit. Both aim to improve connectivity and collaboration between countries, which is a fundamental principle of blockchain technology. With our events, we support blockchain projects that can improve trade transparency and efficiency among Belt and Road countries. Ultimately, it’s about using blockchain to build bridges – both literal and metaphorical – between nations.
Q11. With Hong Kong waiving taxes on crypto investment gains, how does WOW Summit leverage this to attract global investors to the crypto industry?
The tax waiver on crypto investment gains is a game-changer. It’s a big draw for global investors, and we make sure to emphasize that at our events. For investors seeking advantageous conditions, Hong Kong is hard to beat. WOW Summit connects these investors to local startups and government initiatives, creating an ecosystem where innovation and investment thrive, benefiting all parties involved.
Q12. What is Hong Kong’s long-term vision in the global crypto landscape, and what key milestones should the crypto community watch for in the coming years?
Hong Kong’s long-term ambition is to establish itself as a prominent global crypto hub. This means constantly updating its policies and encouraging innovation through R&D.
Some major milestones to keep an eye on include new regulatory announcements, particularly those involving stablecoins, and advancements from projects shown at the WOW Summit. These will have a significant impact on Hong Kong’s future in the global crypto scene.
