Strange Move by Hong Kong Government as it Sets Sights on Metaverse and DeFi

Did you think the Metaverse was a thing of the past? Did you believe institutions and governments were not fans of DeFi? We shared those thoughts too… However, it seems that Hong Kong thinks otherwise.

Reports from the Hong Kong Academy of Finance (AoF) and the Hong Kong Institute for Monetary and Financial Research (HKIMR) suggest that the city is embracing DeFi and the metaverse.

Enoch Fung, CEO of the AoF and executive director of the HKIMR, stated, “The emerging technologies of DeFi and the metaverse, which are closely connected to the broader virtual asset and Web3 developments, will likely present various opportunities for the financial services industry in Hong Kong.”

Don’t Knock DeFi

Despite its opposition to centralized finance, DeFi seems to be a trending topic for institutions in Hong Kong.

According to HKIMR’s report titled, “Decentralised Finance Current Landscape and Regulatory Developments,” 71% of companies have not yet delved into DeFi. However, the 29% that have created DeFi protocols have emphasized their newfound “ability to facilitate the exchange of small amounts of assets without the need for intermediaries or minimum limits.”

While CeFi provides better liquidity, is more inclusive to clients of all levels, and boasts a user-friendly interface.