On 7 June 2022, the theme forum “ verse, NFT and Web 3.0: Ecosystem and Relevant Developments”, which hosted by the Association of Family Office in Asia (“AFO”) and co-organized by InvestHK and FintechHK was shown in Admiralty, Hong Kong. Ms. Mandy Liu, the Vice President, Investor Relations of Huobi Technology Holdings Limited ("Huobi Tech", stock code: 1611.HK), attended as the keynote speaker to share her insightful views on the blockchain ecosystem and its development prospects.

“ verse, NFT and Web 3.0: Ecosystem and Relevant Developments” was shown in Admiralty, Hong Kong

Focusing on the blockchain ecosystem, the forum deeply probed into the current investment situations and prospects of verse, NFT and Web 3.0 in forms of keynote speech and roundtable discussion, together with guests from crypto firms such as Red Hare Analytics Ltd, Horyou, Loopnest and LOST. Among this, Mandy, as the keynote speaker of this event, shared her deep perceptions on the expectations from traditional institutions as well as the development status of the blockchain ecosystem.

Ms. Mandy Liu, the Vice President, Investor Relations of Huobi Tech, attended as the keynote speaker

Speaking of the growing intentions on Web 3.0 from traditional institutions, Mandy concluded as two reasons: on one hand, compared to Web 2.0, the token economy underpinning Web 3.0 has a better outlook, especially in the current macro-environment of soaring inflation and interest rates; on the other hand, for these traditional investment institutions, Web 3.0 is more convenient to understand and promote based on their authentic experiences and investment methods, and hence it is easier for the mass investors to accept. 

However, although Web 3.0 is considered as a new generation of Internet infrastructure, it still has a major conceptual difference from the previous Internet system. Mandy stated that, “The most obvious features of Web 3.0 are openness, privacy, co-construction, and the pursuit of value creation and transmission on the basis of democracy and openness. It is also dependent on the decentralized virtual assets ecosystem, and it is difficult to separate the view from it. From the perspective of investment cycles such as capital creation and transference, actually, these traditional institutions need to ensure the compliance and safety of their own funds when entering in the virtual assets space.”

Looking at the industry, there are numerous licensed Virtual Assets Service Providers (VASPs) committed to providing compliant and secure services. Pioneers in the field of virtual assets, including Huobi Tech, welcome more traditional institutions to enter the blockchain and virtual asset industry through their continuous layout of compliant licenses and security technologies. As of this releasing date, Huobi Tech’s subsidiaries have respectively obtained licenses including Type 4 (Advising on Securities) and Type 9 (Asset Management) issued by the Hong Kong Securities and Futures Commission (“HKSFC”) and was approved to manage 100% virtual assets funds, and also hold the Trust or Company Service Provider (TCSP) license issued by the Hong Kong Companies Registry.

In the capital market, there are also licensed VASPs setting up their own blockchain incubation and M&A department and utilizing their professional industry experience and resources to invest in the blockchain ecosystem, while providing cooperation opportunities for these traditional institutions. In April 2022, Huobi Tech Capital, the strategic investment and M&A unit of Huobi Tech, has been officially established to explore the development opportunities in Web 3.0, DeFi, NFT and verse. 

With global regulators being further clearer on the business operations, taxation and accounting standards in virtual assets, it will bring more positive catalysts for institutions to enter this field. Mandy declared that, “Despite the current market downturn, for, it is also the time for traditional investment institutions to consider the long-term arrangement for this field. As one of the industry representatives in Asia, Huobi Tech is committed to develop the road of compliance. Moreover, we hope to join hands with friends from traditional finance to explore the new trend of global cryptocurrency development together.”