ChainCatcher news, Hong Kong Legislative Council member Wu Jietzhuang tweeted that the Hong Kong Legislative Council has passed the "Stablecoin Bill" in the third reading, expecting to launch a licensing mechanism within the year, allowing institutions to apply to the Monetary Authority to become compliant stablecoin issuers. The bill requires issuers to peg to fiat currency and comply with reserve management, redemption mechanisms, customer asset segregation, anti-money laundering, information disclosure, and other compliance requirements, with regulatory details to be consulted separately. Hong Kong welcomes global companies to apply for issuance in the city.

ChainCatcher message, Sun Yuchen posted on platform X, "I met with Legislative Council member Wu Jiezhuang from Hong Kong and reported the embezzlement case of nearly $500 million in customer reserve funds of First Digital Trust (FDT), and submitted relevant materials to regulatory and judicial authorities. We are fully confident that we will recover the funds and hold the individuals involved in the theft accountable under the law."

ChainCatcher news, the office of Councilor Wu Jiezhang has released a statement titled "Statement on Media Reports Regarding Suspected $500 Million Fraud Case":The incident has attracted widespread attention, and I have great confidence in Hong Kong's rule of law and law enforcement agencies. If the incident is true, the law enforcement authorities will definitely take action to protect the rights of citizens and international investors.Hong Kong has a legal basis and a healthy environment for protecting international investors and the Web3 industry. I urge international investors and technology practitioners not to worry about a single incident and to feel free to continue investing and developing in Hong Kong.My office and the Anti-Fraud Alliance have indeed received more than one case this year that suspected the use of trust companies for fraudulent activities. I believe that society needs to discuss how to improve the system of relevant trust companies in the future, so that criminals cannot exploit loopholes for fraud.I also believe that relevant departments can strengthen citizens' and practitioners' understanding and education about trust companies to prevent fraud from the source. If the media has any inquiries regarding the above topics, please contact Louise at 6350 8883.

ChainCatcher news, according to Hong Kong media Sing Tao Daily, regarding the recent $500 million cryptocurrency trust fraud case, the chairman of the Hong Kong Legislative Council's Web3 and Virtual Assets Development Subcommittee, Wu Jietzhuang, stated, "Hong Kong is actively attracting foreign investment, including mainland funds, but in fact, many outsiders have a very superficial understanding of Hong Kong's system, and there are even many misunderstandings. I believe this is a problem that needs to be addressed. The FDT incident has international implications, and the authorities must quickly re-examine different regulatory systems to respond to society.Due to the lack of a custodial regulatory system, many times Web3 companies rely on trust companies to help third parties custody assets. If this is done properly, there is no problem, but those with ulterior motives may exploit this loophole to engage in illegal activities. I am concerned that external confidence in Hong Kong may weaken, and I suggest that the authorities should increase public education and examine whether there is room for optimization."Legislative Council financial sector member Chan Chan-ying pointed out that if assets are entrusted to a trust company in the form of a company, a regulatory vacuum may arise. He advised investors to carefully investigate the company's background and called for consideration of including "trusts" within the scope of legal regulation.

ChainCatcher news, during the AMA event "Let's BUILD, Link the Future, Co-create Hong Kong's Web3 New Ecosystem" held by OSL, Hong Kong Legislative Council member Wu Jiezhuang revealed that the Hong Kong fiat-backed stablecoin bill is currently under review by the Legislative Council. The Hong Kong Monetary Authority (HKMA) will soon follow up with the licensing application process to provide a clearer and more robust compliance pathway for the market. Additionally, Hong Kong will initiate a public consultation on OTC and custody licenses and plans to start legislation by the end of the year to ensure that both online and offline OTC trading platforms are under effective regulation, creating a safer and more transparent market environment.Wu Jiezhuang further stated that the Hong Kong Securities and Futures Commission announced 20 new regulatory measures during Consensus this February, including inviting top global exchanges to apply for licenses in Hong Kong, simplifying the compliance process for exchanges to list tokens, and opening up staking/contract and other derivative businesses, all of which are long-term potential benefits.

ChainCatcher news, according to the Wen Wei Po report, Hong Kong Legislative Council member Wu Jiezhuang stated that he suggested promoting the establishment of a unified blockchain trading and settlement platform for licensed virtual asset trading platforms in Hong Kong, facilitating 24/7 uninterrupted trading through the tokenization of physical assets. He pointed out that to address the bottlenecks in the development of the digital economy, such as financing difficulties for small and medium-sized enterprises in the mainland and inefficiencies in cross-border transactions, he proposed setting up a digital asset foreign exchange fund in Hong Kong to provide digital asset collateral financing for small and medium-sized enterprises in the Greater Bay Area, while also promoting financial circulation in the Greater Bay Area.

ChainCatcher news, according to Hong Kong Wen Wei Po, Hong Kong is implementing regulations on cryptocurrency exchanges, but there are only 9 licensed exchanges, primarily serving professional investors. Hong Kong Legislative Council member Wu Jietzhuang stated that Hong Kong's cryptocurrency regulation will welcome a new mechanism this year, with the SAR government establishing a licensing system for over-the-counter (OTC) cryptocurrency trading and requiring OTCs to comply with the Anti-Money Laundering (AML) and Know Your Customer (KYC) provisions of the Anti-Money Laundering Ordinance.In addition, license holders can only conduct spot trading between virtual assets and fiat currencies, and must register and monitor business wallets and transaction records. The Customs Commissioner, as the regulator, is responsible for approving licenses, conducting routine inspections, investigating violations, and imposing penalties, with violators facing fines of up to HKD 1 million or imprisonment for two years. Regarding KYC certification, the SAR government recommends verifying customer identities, assessing and recording the purpose and nature of customer transactions, and continuously monitoring transaction activities.

ChainCatcher news, according to Wen Wei Po, National Committee member Wu Jiezhang will submit several proposals at the upcoming National Two Sessions in March. The proposals include improving the digital asset circulation mechanism to promote the deep integration of the real economy and the digital economy.The proposals also suggest applying blockchain technology to build an information encryption system to combat cross-border telecom fraud, and propose specific measures such as establishing a multi-party collaboration mechanism and improving cross-border judicial cooperation.

ChainCatcher news, on February 6th afternoon, 14 members of the Hong Kong Legislative Council C15+ met with Financial Secretary Paul Chan and other officials to discuss the new financial budget. Among them, Legislative Council member Wu Jiezhuang proposed a total of 22 suggestions across five major areas, including the development of the Web3 industry.In terms of supporting the Web3 industry, Wu Jiezhuang suggested continuing the development direction of the 2023/24 financial budget and proposed two key measures: first, to invest HKD 50 million to establish a seed fund, using a 1:1 matching ratio to support well-known overseas enterprises and large industry events to settle in Hong Kong; second, to allocate an additional HKD 50 million to establish a dedicated Web3 investment matching fund.

ChainCatcher news, Hong Kong Legislative Council member Wu Jietzhuang posted on social media: "The Hong Kong Monetary Authority recently published a report on virtual banks. I appreciate the Hong Kong SAR government's support for the upgrading of banking services and the development of virtual banks in recent years, but at the same time, my team conducted a survey on the opinions of Web3 companies regarding banking services in Hong Kong, which indicated that Web3 companies are facing difficulties in opening accounts, leading to ineffective business development. Therefore, I propose at today's press conference:Virtual banks should diversify their services and develop in a way that complements traditional banks.⁠Hong Kong should establish virtual asset/digital asset banks as soon as possible or upgrade virtual banks to manage virtual assets, in line with the SAR government's Web3 development.⁠Hong Kong should accelerate the development of the Web3 ecosystem. Currently, virtual asset policies are a focal point of discussion among global governments, and we should strive to become the Hong Kong Web3 center by promoting the development of the entire chain and ecosystem as soon as possible."

ChainCatcher news, Hong Kong Legislative Council member Wu Jietzhuang stated that Interpol has issued a red notice for Huang Zhengjie and Mo Junting, believing that the police will definitely find a lot of evidence to prove the roles of the individuals involved in the case, and also to prove that blockchain and the internet are not lawless areas, and that fraudsters will definitely be brought to justice. He also pointed out that the arrest warrant is not merely symbolic, as governments around the world take commercial fraud cases very seriously and will cooperate and support efforts, expecting that those involved will be apprehended soon.Wu Jietzhuang also stated that the Legislative Council will establish two new laws regarding virtual assets in the future, including regulations on stablecoins and over-the-counter trading, which are expected to be introduced for the first reading in the Legislative Council by the end of this year and early next year. He reminded that if anyone claims that investing in virtual currencies is low risk with high returns, one must be cautious; secondly, all investment products must be purchased from licensed institutions, and relevant information can be found on the Securities and Futures Commission's website; finally, the SAR government can increase resources for investor education.

ChainCatcher news, regarding Trump's speech at the Bitcoin conference, Hong Kong Legislative Council member Wu Jiezhuang expressed his views on social media:Bitcoin and Web3 are important nodes in global development and should encourage global cooperation;In the future, consideration can be given to including Bitcoin in strategic financial reserves under compliant conditions;I believe the SAR government will responsibly and gradually open the market.

ChainCatcher news, Hong Kong Legislative Council member Wu Jietzhuang stated that to promote the development of Web3 and virtual assets in Hong Kong, the Legislative Council has recently established a subcommittee on Web3 and virtual asset development. It is now seeking opinions from the global industry to propose policy recommendations and topics for future industry development discussions. It is proposed that detailed research will be conducted and summarized, and presented to the government through the Legislative Council platform. The global industry can provide feedback on the following topics to help Hong Kong become a global Web3 hub:Web3 Policy Aspects:How to balance and promote the foundational technologies, legal, and regulatory frameworks of Web3;How to collaborate with the country to promote Hong Kong as a Web3 hub connecting internationally;The integrated development of artificial intelligence and Web3 technologies and the improvement of the regulatory framework for artificial intelligence;Policy and regulatory recommendations for decentralized autonomous organizations (DAOs) to support and regulate the healthy development of DAOs in Hong Kong;How to cultivate and attract talent in Web3 technology and financial innovation;Virtual Asset Aspects:Recommendations for measures that benefit the development of the virtual asset industry;How to strengthen protections for virtual asset investors and consumers, enhancing market confidence;Potential application scenarios and risks of stablecoins in Hong Kong, recommending a regulatory framework that ensures financial stability without stifling innovation;Exploring the demand for professional custody services arising from the rise of virtual assets in Hong Kong, and researching corresponding custody methods and regulatory measures.

ChainCatcher news, the Hong Kong Legislative Council's Web3 and Virtual Assets Development Subcommittee has announced the election results for its chairman and vice-chairman. According to Legislative Council document CB(1)769/2024, Legislative Council member Wu Jiezhuang has been successfully elected as the chairman of the subcommittee.The establishment of the Web3 and Virtual Assets Development Subcommittee primarily examines the application and development of Web3 and virtual asset technologies in Hong Kong, and makes recommendations on the implementation of relevant regulations and policies. The subcommittee's first meeting will be held on June 17, 2024 (Monday) from 4:30 PM to 5:00 PM in Conference Room 2A of the Legislative Council Complex.Wu Jiezhuang stated that in the coming year, he will actively work with the SAR government, industry, and society to transform the Hong Kong Special Administrative Region into an international Web3 center.

ChainCatcher news, Hong Kong Legislative Council member Wu Jietzhuang wrote an article in the Ta Kung Pao titled "Inside and Outside the Parliament / Tripartite Efforts to Develop 'Virtual Asset Banks'." The article points out the establishment of "virtual asset banks" to address industry pain points, further providing comprehensive virtual financial services and facilities.The specific content includes: providing buying and selling as well as exchange services for individual customers of virtual currencies, offering unified virtual asset clearing, settlement, and custody services for qualified virtual asset service providers, lowering the market entry threshold for small and medium-sized investors; and assisting and encouraging the industry to provide related insurance, funds, asset management, and other "middle-income businesses," offering more innovative virtual financial products and services, and comprehensively developing an ecosystem that combines traditional and virtual finance.

ChainCatcher news, National Committee member of the Chinese People's Political Consultative Conference and Hong Kong Legislative Council member Wu Jiezhuang posted on the X platform, stating that he met this morning with Hong Kong Financial Secretary Paul Chan and Deputy Secretary Wong Wai Lun, expressing the hope that the main principles of the budget proposal are zero tax increases, fewer fees, and increased momentum. He opposes various tax increase suggestions proposed in the community, including the imposition of capital gains tax, departure tax, and stamp duty on virtual assets; he believes that to enhance the development momentum of various industries, it is necessary to break down barriers and vigorously develop the Web3 industry, among others.

ChainCatcher News: National Committee member of the Chinese People's Political Consultative Conference and Hong Kong Legislative Council member Wu Jiezhuang stated on social media that the U.S. SEC approved the spot Bitcoin ETF in the early hours of Hong Kong time. This move is significant for the virtual asset market and will attract more traditional investors and funds to participate in virtual asset investments.Wu Jiezhuang believes that Hong Kong should also dare to be a "leader" in the virtual asset field, leading the entire industry development through innovative policies. The SAR government should expedite the implementation of the spot ETF and enhance the education on virtual asset awareness.

ChainCatcher news, Hong Kong Legislative Council member Wu Jietzhuang stated in an exclusive interview: "Hong Kong's (Web3) development is actually very lagging, much slower than expected, to the point of being unbelievable."Wu Jietzhuang mentioned that the general public's understanding of Web3 is quite limited, still stuck in the perceptions from years ago regarding cryptocurrency speculation and money laundering, with a lot of negative impressions. The rapid development of Web3, blockchain, AI, big data, etc., hopes to provide young people in Hong Kong with new opportunities and directions for development.

ChainCatcher news, according to Sing Tao Global, Hong Kong Legislative Council member Wu Jietzhuang stated that in the past few weeks, together with other volunteer lawyers, he has provided pro bono legal services for about 100 JPEX victims. He mentioned that some victims are seeking self-help through various methods, including civil lawsuits, pursuing compensation from the involved money exchange shops or KOLs, and considering collective action with other victims affected by the same money exchange shop. However, due to the varying amounts involved, ranging from hundreds of thousands to over a million, and the sensitivity regarding legal fees, they are still seeking legal advice and have not yet made a final decision.Additionally, Wu Jietzhuang pointed out that cryptocurrencies and other virtual assets are relatively new phenomena, and the third generation of the internet (Web3) is the future development direction for Hong Kong. As new products and investment opportunities emerge, there should be an enhancement in corresponding investor education to prevent fraud. He further noted that in the past, various virtual investment products have become tools for scams, and there may be other types of fraud in the future, hoping for government improvements. He continued to say that the Securities and Futures Commission responded quickly this time, but there is still room for improvement, suggesting the establishment of a research group as soon as possible to achieve a balance in the development, regulation, and investor protection of the third generation of the internet and virtual assets.

ChainCatcher news, according to Hong Kong Ming Pao, the virtual currency platform JPEX is involved in a conspiracy fraud case. As of 5 PM yesterday, the Hong Kong police have received reports from 2,265 individuals, with the amount involved increasing to approximately HKD 1.4 billion.Hong Kong Web3.0 Association member and Legislative Council member Wu Jietzhuang cited data from over 50,000 hot wallets closely linked to JPEX, stating that since the Securities and Futures Commission issued a warning about JPEX's unlicensed status last Wednesday, at least HKD 167 million worth of virtual currency has been transferred out of the JPEX platform as of September 22. This includes approximately HKD 2.63 million in BTC, approximately HKD 20.8 million in ETH, approximately HKD 13.6 million in USDT, and over HKD 100 million in USDC, with most of the transfers occurring on or after this Monday.Some cryptocurrency fraud analysis consultants believe that JPEX has significantly increased withdrawal fees in the past week, yet a large amount of funds continues to flow out. They suspect that the funds being transferred are not from retail investors, indicating unusual fund movement, likely orchestrated by "whales." It is understood that the police will investigate the flow of funds and collaborate with financial institutions to trace criminal proceeds, examining whether there are any links to money laundering or other crimes, and will also seek assistance from overseas law enforcement agencies.