Hong Kong Monetary Authority Releases Reports on DeFi and Metaverse in Finance

The Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance (AoF), has released two new Applied Research reports titled “Decentralised Finance: Current Landscape and Regulatory Developments” and “The Metaverse: Opportunities and Challenges for the Financial Services Industry.”

Exploring DeFi and the Metaverse

These reports delve into the cutting-edge technologies of decentralised finance (DeFi) and the metaverse, offering a comprehensive analysis of their applications within the financial services sector. They provide an overview of the international and Hong Kong-specific regulatory environments and summarize the findings from surveys and interviews with local market practitioners.

According to the Hong Kong Monetary Authority (HKMA), respondents indicated a keen interest in leveraging DeFi and metaverse applications, with many exploring opportunities within the virtual asset ecosystem. The reports aim to facilitate the healthy development and application of these technologies in Hong Kong's financial services industry.

Key Insights and Future Prospects

Enoch Fung, Chief Executive Officer of the AoF and Executive Director of the HKIMR, emphasized the potential of DeFi and the metaverse to present various opportunities for Hong Kong's financial services industry. “These emerging technologies, closely connected to broader virtual asset and Web3 developments, will likely offer valuable insights to market participants and regulators, helping to inform future policy initiatives and market innovations for Hong Kong's digital ecosystem,” Fung stated.

For a detailed understanding, the reports are available on the AoF/HKIMR websites: DeFi Report and Metaverse Report.

About the Hong Kong Academy of Finance (AoF)

The AoF is a collaborative initiative involving the Hong Kong Monetary Authority, the Securities and Futures Commission, the Insurance Authority, and the Mandatory Provident Fund Schemes Authority. It aims to be a center of excellence for developing financial leadership and a repository of knowledge in monetary and financial research, including applied research.

About the Hong Kong Institute for Monetary and Financial Research (HKIMR)

The HKIMR, as the research arm of the AoF, focuses on conducting research in monetary policy, banking, and finance that are strategically important to Hong Kong and the Asia region. Its Applied Research studies target topics highly relevant to the financial industry and regulators in Hong Kong, providing insights into the long-term development strategy and direction of Hong Kong's financial industry.

The Hong Kong Institute for Monetary and Financial Research (HKIMR) releases two new Applied Research reports on DeFi and the metaverse. Enoch Fung, CEO of the AoF and Executive Director of the HKIMR (left), and Giorgio Valente, Head of the HKIMR (right), host a press briefing to share key findings.