HONG KONG — Hong Kong is a growing locale for Web3 and crypto innovation, its chief executive said on Wednesday.

John KC Lee, the chief executive of the Hong Kong Special Administrative Region, opened CoinDesk's Consensus Hong Kong conference with a brief speech about the city's work to grow its crypto communities and businesses.

"The HKSAR Government is committed to establishing Hong Kong as a global hub for innovation in digital assets," he said in taped remarks. "That’s why over the past few years, Hong Kong has been actively building the regulatory framework to promote the steady and sustainable development of our Web3 ecosystem."

Hong Kong is positioned to take advantage of both growing crypto efforts and its existing position operating close to China and the broader financial markets, Lee said.

"Under the unique 'one country, two systems' principle, Hong Kong is the only city that converges both the China advantage and the global advantage," he said. "... What’s more, Hong Kong’s financial regulatory system is robust, and our financial market stands out for its deep liquidity, innovative products and world-class investor protection."

More specifically, he pointed to Hong Kong's efforts in crypto, including last year's policy statement on digital asset regulation and stablecoin work.

The Hong Kong Monetary Authority is close to issuing licenses for stablecoin issuers, he said, saying that the first licenses may come out in the next month.

Similarly, Hong Kong's Securities and Futures Commission is working to grow the region's virtual asset market liquidity to further "facilitate the development of this vibrant area of growth."

"Hong Kong is in a strong position in promoting Web3 development," he said. "Hong Kong will continue to go all out to stay at the forefront of this pivotal shift in finance and technology. We welcome companies and institutions from around the world to join hands with us, and build a brighter digital future together."