Hong Kong University Vice President Pushes “Regulation as a Service” to Power Web3 Leadership

During an event organized by New Fire Technology, Avenir Group, and Techub News, Professor Wang Yang, Vice President of the University of Hong Kong (HKU), presented a groundbreaking vision for regulations. He encouraged the notion of treating regulation as a service (RaaS) instead of a constraint. This vision aims to redefine regulatory frameworks as innovations, enabling startups to grow under transparent and adaptable management. The approach emphasizes governance as an enabler for economic competitiveness and investor confidence.

The suggested RaaS model fosters cooperation between innovators and regulators by prioritizing compliance as a collaborative effort rather than imposing strict measures. Professor Wang highlighted the advantages of Hong Kong’s transparent supervision and adaptive policies, positioning the city as a leading Web3 capital, rivaling Singapore and Switzerland. This model promotes a governance style that facilitates innovation while ensuring accountability in regulatory practices.

Hong Kong’s regulatory developments align with Professor Wang’s vision. This framework includes measures such as 98% cold storage, multi-layered security systems, and full AML compliance to ensure exchange transparency. These initiatives are partly influenced by lessons learned from incidents like the Bybit hack in early 2025. The goal is to create a secure ecosystem for traders and institutions venturing into the crypto sector in the region.

In May 2025, Hong Kong published its Digital Asset Development Policy Declaration 2.0, which reinforced the city’s Web3 ecosystem. The policy introduced a pilot grant program of HK 500,000 for blockchain projects under the LEAP framework: Legal streamlining, Ecosystem growth, Application focus, and People development. Supported projects include real-world asset tokenization, stablecoin tools, and digitized green bonds. This program demonstrates Hong Kong’s long-term strategy of integrating blockchain into its physical economy.

In August 2025, the Hong Kong Monetary Authority (HKMA) spearheaded the passing of the Stablecoin Ordinance, a pioneering piece of legislation. It mandates 1:1 reserve coverage, AML verification compliant with FATF standards, and real-time auditing. This makes Hong Kong one of the few regions with clear regulations for stablecoins, ensuring greater accountability from issuers and protection from risks like de-pegging or misuse of funds. Together with the Securities and Futures Commission's (SFC) regulation of trading platforms, this framework offers equal safeguards for users and innovators.

Interestingly, Professor Wang was once a blockchain skeptic. During a 2012 visit to HKUST, he referred to Bitcoin as a “financial illusion.” Today, as an HKU leader and AI researcher, Wang advocates for collaboration between academia and industry to develop Hong Kong’s digital economy. The ongoing regulatory adaptations align with global standards set by FATF and the Basel Committee on Banking Supervision, enhancing the city’s attractiveness to international Web3 startups.

The RaaS ideology championed by Professor Wang could influence neighboring markets like Japan and South Korea, where crypto supervision frameworks are under revision. The industry response has been largely positive, with commentators such as @wublockchain12 and icomaki2 recognizing its transformative potential in redefining governmental support for innovation.