Web3.0 Index Fund Is Expected to Settle in Asia Compliantly, Is Hong Kong Ready?

Singapore, Singapore--(Newsfile Corp. - June 30, 2021) - As the star project of the web3.0 Next Generation Internet, a decentralized index fund with an algorithm-based resilient mechanism for automatic portfolio and management, Web3 Fund is a revolutionary asset management project in the web3.0 space. The component assets of Web3 Fund are the most representative portfolio of web3.0. By automatically transferring their underlying asset holdings to the index pool through smart contracts, investors build a new EIP tool - the elasticity index pool (EIP).

Web3 Fund entrusts the collateral assets to a more professional asset custody compliance institution. Due to the special properties of blockchain assets, Web3 Fund's elasticity index pool (EIP) selects a compliant trust company in Asia to host the assets, which provides proof of assets for Web3 Fund's EIP. This enables Web3 Fund to take full advantage of the openness, transparency, verifiability and credibility of the assets provided, due to the adequate reserve protection. Web3 Fund can issue a fund product for professional investors, which is a fund that invests 100% in virtual assets, subject to market compliance and licensing. Furthermore, in comparison to Grayscale Investments' Bitcoin Trust, Web3 Fund on a compliant basis issues W3F tokens and empowers them to redeem their assets. It means that investors can redeem the real assets underlying the index tokens at any time, which provides additional investment flexibility. A compliant Web3 Fund is set to further broaden the investment market, thus contributing to its role as a bridge between the centralized and DeFi markets. In the foreseeable future, Web3 Fund will hopefully become a bright star in the global financial market.

Underneath all of these, as the financial centre of Asia, Hong Kong will undoubtedly play a full compliance guarantee. As the international financial centre of Asia, Hong Kong has a well-developed financial and securities industry, which means that Hong Kong is capable of providing Web3 Fund with financial services to satisfy its needs. Moreover, Hong Kong is the connecting bridge between global and mainland China business, whereas the status of mainland China in the world blockchain industry cannot be ignored. In this respect, landing Web3 Fund in Hong Kong means that it occupies a central position in the market of the whole industry. In comparison to other free markets, Hong Kong's attitude towards blockchain and cryptocurrencies in general is cautious and open. On one hand, it was suggested by the Hong Kong government in May that all cryptocurrency exchanges operating in Hong Kong must be licensed by Hong Kong's market surveillance agency and only offer services to professional investors. On the other hand, the Hong Kong Monetary Authority is also actively promoting its cooperation with Chinese central bank on digital RMB to further accelerate the process of blockchain implementation of technology applications. This attitude has also been reflected in an interview with former Hong Kong Exchanges and Clearing Limited Chief Executive Officer Li Xiaojia. Li has stated that in order to enhance Hong Kong's status as an international financial centre, (Hong Kong) should proactively explore innovations in blockchain and other technology-enabled digital finance. Meanwhile, he also said that "regulatory sandbox" tools should be used in the process of exploration to minimize the possible adverse impact of technology application. As Internet technology evolves rapidly, Web3 Fund as a decentralized index fund presents a new compliance challenge to the Hong Kong SAR Government.

As a new generation Internet index fund, it is worthwhile to note that Web3 Fund is not satisfied with merely landing in compliance by means of a trust, but subsequently will actively land in the Hong Kong capital market and actively move closer to the traditional financial industry. The innovative company helps solve the industry's "pain points" and benefits investors and the industry. Decentralized index fund has unparalleled advantages compared with the traditional fund. Just like the role of China Mobile, China Unicom, and China Telecom in promoting world-leading 5G technology to upgrade China's network capacity, Web3 Fund will be one of the pioneers and cornerstones in revolutionizing the traditional funds with the new generation decentralized index funds.

Conclusion: Beneficial development of the blockchain industry requires effective regulation of the market and scientific guidance of policies. Meanwhile, relevant enterprises should also actively adopt compliance and further guide the return of the value of technology from the perspective of the healthy development of the entire industry ecology. In this era of opportunities and challenges, there are sufficient reasons to believe that on the road to compliance, Web3 Fund shall stand on the tide and burst forth with more powerful vitality.

Remarks: This paper is not intended to constitute any investment advice, the market is risky and investment requires caution.

Feith Fang

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/89107