In the Web3 industry in Hong Kong, technology has driven the rapid growth of the virtual asset investment market. However, on the other hand, industry risks such as the JPEX fraud case have occurred one after another, providing important warnings to development of Web3 industry. At the recently concluded Legislative Council Policy Address Question and Answer Session in Hong Kong, Chief Executive, Lee Ka Chiu John, stated that they are on the same front as the victims of fraud and will vigorously pursue any criminals.
At the same time, Lee Ka Chiu John also pointed out that any technological development has its advantages and disadvantages, described as a double-edged sword. While the rapid development of the Web3 industry has brought new growth points to Hong Kong, how to address potential risks properly?
On October 28, the "LinkWeb 3.0 Security Seminar" hosted by OKLink and FTChinese.com, and co-organized by Business School of University of Hong Kong and iCube of University of Hong Kong, was successfully held.
Publisher of FTChinese.com, Tracy Zhang and Associate Professor of Practice in HKU Business School, Joseph P.H.Chan, delivered speeches at the seminar. Feng Wang, editor in chief of FTChinese.com, hosted the event and invited Associate Vice-president of the University of Hong Kong, Chen Lin, Partner at Ashurst Law Firm, Lance Jiang, Chief Researcher of OKG Research, Hedy Bi, Head of Compliance Director at HashKey, Samuel Lok, and Assistant Professor of Philosophy at the University of Hong Kong, Yushun Huang, to deliver speeches and participate in round-table discussion.
The issue of safeguarding the personal interests of investors sparked heated discussions at the beginning of the event.
In their opening speeches, Tracy Zhang, Publisher of FTChinese.com, and Joseph P.H.Chan, Associate Professor of Practice in HKU Business School, firstly thanked the guests and the audience for coming.
In the first speech, Chen Lin, Associate Vice-president of the University of Hong Kong, around the theme of "How to better promote the healthy development of fintech in Hong Kong”, proposed that "RWA physical assets on chain will be an important direction for the development of Hong Kong's Web3 industry. Taking stable coins as an example, on-chain transparency has more advantages than off-chain. The transparency and security of assets are the focus of the industry. OKLink on site today is very concerned about this."
From left to right: Chen Lin, Associate Vice-president of the University of Hong Kong. Lance Jiang, Partner at Ashurst Law Firm. Hedy Bi, Chief Researcher of OKG Research. Yushun Huang, Assistant Professor of Philosophy at the University of Hong Kong.
Partner at Ashurst Law Firm and solicitor of JPEX victims, Lance Jiang, provided advice from the perspective of investors on how to safeguard personal interests, stating "If you encounter a fraud case on a virtual asset trading platform, the victim can obtain civil compensation through a compensation order in criminal proceedings, sue the platform for breach of contract based on the contract signed with the platform, or file relevant civil litigation against relevant internet influencer and KOLs. At the same time, victims can protect their own interests in accordance with the Securities and Futures Ordinance."
Voices from within the industry: How to ensure compliance and security of virtual assets?
Hedy Bi, Chief Researcher of OKG Research, shared during the event, "digitalization is blurring the boundaries of traditional industries, leading to a true financial revolution. When facing the issuance and trading of financial instruments that operate around the clock, in addition to the necessary licenses for business expansion, it is also important for platform operators, dealers, brokers, and other relevant parties to implement internal self-monitoring and risk management measures. focusing on anti-money laundering and counter-terrorism financing. "
At the same time, Hedy Bi believes that when transactions are "on-chain," AML compliance program should also be "on-chain." Taking security tokens as an example, when security tokens can freely circulate without relying on intermediaries, it ensures the compliance of inter institutional transactions to rely on the all levels of KYC (Know Your Customer) of the institutions. The most effective practice for financial institutions is to maintain regular KYC while also emphasizing KYA (Know Your Address) and KYT (Know Your Transactions) on chain.
Hong Kong’s new licensing system officially take effect in June. At the same time, OKLink launched the “Onchain AML”, the anti-money laundering compliance technology solution for the entire web3 industry. The solution includes two key capabilities: KYA and KYT. KYT can comprehensively monitor on-chain transaction risks and can effectively identify high-risk behaviors and suspicious transactions in virtual asset transactions. Currently it has transaction detection and full-currency analysis capabilities for 127 blockchain networks; KYA has already supported risk identification and analysis of addresses on 14 major public chains, automatically scanning from five dimensions including suspicious transactions, blacklisted addresses, blacklisted address associations, high-risk identities, and entity risks, helping relevant institutions take appropriate solutions based on risk characteristics.
In the subsequent sharing, Head of Compliance Director at HashKey, Samuel Lok, from the perspective of internal security application practices of trading institutions, says, "HashKey provides services to many retail customers, so it attaches great importance to user security awareness education and regulatory compliance. We will strengthen interaction with users on the premise of paying attention to SFC dynamics. A new era of global regulatory compliance has arrived. We hope to collaborate more with Web3 practitioners to make Hong Kong a more friendly environment and shape the future of digital assets together."
On-site guests initiated the launch of an industry self-discipline alliance
During the round-table discussion, Yushun Huang, Hedy Bi, Samuel Lok, and Lance Jiang held in-depth discussions on the theme of "improving the security and compliance of virtual asset transactions".
The guests advocated the launch of an industry self-discipline alliance, hoping to strengthen communication between enterprises and regulators through this alliance, so that virtual asset transactions can move towards security and compliance faster. In the final Q&A, many guests also explained difficult concept of their technical capabilities simply, helping the audience deepen their understanding of security in the virtual asset transaction process.
As the organizer of this event, the relevant person in charge of OKLink said, “"We hope to focus on technology to empower the security of virtual transactions and unite all parties in the industry to provide professional security construction suggestions to Hong Kong regulatory agencies and trading institutions, and provide solutions to risk issues that may be encountered in the Web3 industry." OKLink Holdings (1499. HK), as the only Hong Kong stock listed company in Hong Kong and even globally that deeply cultivates blockchain big data and continues to pay attention to regulatory and compliance technology, has confidence and strength to rely on its years of technological accumulation to provide comprehensive technical services, promoting the development of the security and compliance process of the Hong Kong Web3 industry.
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