The rapid evolution of fintech and Web3 technologies is reshaping global financial systems, demanding innovative legal frameworks and adaptive regulatory strategies. At the forefront of this transformation in China stands Professor Zhao Binghao, a renowned expert in commercial law, fintech, and digital law. As Dean of the Institute of Fintech and Legal Innovation at China University of Political Science and Law, Professor Zhao has launched an elective course titled Legal Policy and Regulation of Fintech and Web3. This course equips students with a deep understanding of the legal and regulatory challenges posed by emerging technologies, particularly blockchain, decentralized finance (DeFi), and virtual assets.
Designed to bridge theory and practice, the course features guest lectures from industry pioneers and leading academics. By integrating real-world insights with academic rigor, it prepares future legal professionals to navigate the complexities of a digitized financial ecosystem.
Hong Kong and Mainland China: Divergent Paths Toward Common Regulatory Goals
On April 8, 2024, during the seventh session of the course, Professor Zhao delivered a compelling lecture titled China’s Path to Crypto Regulation: Hong Kong and Mainland Converging. He explored the distinct yet complementary regulatory trajectories of Hong Kong and mainland China in managing virtual assets.
Hong Kong has emerged as a proactive player in crypto regulation, launching initiatives such as:
- Stablecoin oversight frameworks
- Asset tokenization pilots
- Digital Hong Kong Dollar (e-HKD) development
- Spot Bitcoin and Ethereum ETF approvals
These moves signal Hong Kong’s ambition to become a global hub for digital asset innovation while maintaining financial stability. The city’s regulated environment allows licensed exchanges and custodians to operate transparently, fostering investor confidence and institutional participation.
👉 Discover how global markets are shaping the future of digital finance.
In contrast, mainland China has adopted a more cautious stance. While initial coin offerings (ICOs) and cryptocurrency trading are prohibited, the People's Bank of China has made significant progress with its Digital Currency Electronic Payment (DCEP) system—commonly known as the digital yuan. This centralized CBDC aims to enhance monetary policy efficiency, reduce transaction costs, and strengthen anti-money laundering (AML) controls.
Despite these differences, Professor Zhao emphasized that both regions share a common vision: financial stability in the digital age. He argued that while Hong Kong leads in market-driven innovation, the mainland provides structural support through technological infrastructure and policy coordination. Ultimately, he believes the two will converge toward a harmonized model that balances innovation with risk management.
“Hong Kong is the gateway for China’s reform and new economy, while the mainland is the engine behind Hong Kong’s growth,” said Professor Zhao.
Web3 Innovation: From Theory to Real-World Application
The session also featured Kong Jianping, founder of Nano Labs, director at a Nasdaq-listed company (NA), board member of Hong Kong Science and Technology Parks Corporation, and member of Hong Kong’s Web3 Taskforce. Delivering a talk titled New Opportunities in Web3 Development, Kong outlined four evolutionary stages of Web3:
- Infrastructure Layer – Blockchain protocols and consensus mechanisms
- Protocol Layer – Decentralized identity, storage, and communication
- Application Layer – DeFi, NFTs, DAOs, and social platforms
- Ecosystem Integration – Interoperability across chains and traditional systems
He further identified six current hotspots:
- Institutional adoption of crypto
- Tokenization of real-world assets (RWA)
- Regulatory clarity in key jurisdictions
- Scalability solutions (e.g., Layer 2s)
- Privacy-preserving technologies
- Cross-border payment innovations
Kong also introduced Three Laws of Web3:
- Value flows where ownership is clear
- Innovation thrives in open protocols
- Trust is decentralized, not eliminated
By grounding his lecture in practical examples—from DeFi lending platforms to NFT-based intellectual property rights—he enabled students to grasp both the technical potential and legal ambiguities inherent in Web3.
Programmable Finance: The Future of Payments and Compliance
Returning as a guest speaker was Meng Yan, co-founder of Solv Protocol, a DeFi market infrastructure project. Known for his work on programmable finance, Meng shared live case studies from central bank digital currency (CBDC) pilots:
- Australia’s Digital Invoice Project: Using programmable CBDCs to automate tax collection and supply chain financing.
- MAS-Ghana Central Bank DESFT Pilot: Enabling cross-border trade settlements via tokenized assets and smart contracts.
These experiments demonstrate how programmable payments can synchronize three critical flows in economic activity:
- Cash flow
- Information flow
- Logistics flow
Meng stressed that this synchronization—made possible by blockchain and smart contracts—is the strongest value proposition of Web3. Beyond efficiency, programmable finance enables programmable compliance, where regulatory rules are encoded directly into transactions.
For example, a tokenized bond could automatically enforce Know Your Customer (KYC) checks, restrict transfers to accredited investors, and distribute interest payments without intermediaries. This shift transforms regulation from reactive enforcement to proactive design.
👉 Explore how programmable finance is redefining global transactions.
Cultivating Interdisciplinary Talent for the Digital Economy
The Legal Policy and Regulation of Fintech and Web3 course reflects a growing recognition: legal professionals must understand technology, and technologists must respect legal boundaries. By exposing students to real-world projects, regulatory debates, and cross-jurisdictional comparisons, the course cultivates a new generation of hybrid experts capable of shaping responsible innovation.
Core keywords naturally embedded throughout this discussion include:
- fintech regulation
- Web3 legal framework
- crypto policy China
- Hong Kong virtual asset rules
- programmable payments
- digital currency innovation
- blockchain compliance
- DeFi regulation
These themes not only reflect current industry trends but also align with search intent from professionals seeking authoritative insights on digital finance governance.
Frequently Asked Questions
Q: Is cryptocurrency legal in mainland China?
A: No. Trading and issuing cryptocurrencies are banned for individuals and institutions. However, the digital yuan (e-CNY), a central bank digital currency (CBDC), is fully legal and actively promoted.
Q: Can Hong Kong residents invest in crypto ETFs?
A: Yes. Hong Kong has approved spot Bitcoin and Ethereum ETFs, allowing retail investors to gain exposure through regulated financial products.
Q: What is programmable compliance?
A: It refers to embedding regulatory rules—such as KYC, AML, or investor accreditation—directly into smart contracts so they are automatically enforced during transactions.
Q: How does asset tokenization work legally?
A: Tokenization involves representing real-world assets (like real estate or bonds) as digital tokens on a blockchain. Legally, it requires clear ownership registration, custody solutions, and compliance with securities laws.
Q: Why is Hong Kong adopting a different crypto approach than mainland China?
A: As a special administrative region with its own legal system, Hong Kong leverages its international financial status to experiment with regulated innovation while maintaining alignment with national financial stability goals.
Q: What career opportunities exist at the intersection of law and Web3?
A: Roles include blockchain compliance officer, smart contract auditor, crypto policy analyst, DeFi legal consultant, and digital asset regulator—fields increasingly in demand across governments and enterprises.
👉 Learn how you can enter the fast-growing field of digital asset innovation.
Advancing Fintech Law Through Academic Leadership
Under Professor Zhao Binghao’s leadership, the Institute of Fintech and Legal Innovation has become a leading think tank in digital finance law. By uniting scholars, regulators, and industry leaders, it drives research that informs policymaking and educates future innovators.
As Web3 continues to evolve, courses like this play a vital role in shaping a legal environment that supports responsible technological advancement—one where innovation flourishes within clear, fair, and enforceable boundaries.