Hong Kong has reiterated its commitment to become a regional crypto hub following the collapse of cryptocurrency exchange FTX. “As some cryptocurrency exchanges collapsed one by one, Hong Kong has become a quality benchmark for digital asset companies,” said a senior government official.
Hong Kong aims to become a regional crypto hub
Hong Kong Finance Secretary Paul Chan Mo-po reaffirmed the city’s crypto commitment during a web3 summit in Cyberport on Monday.
Emphasizing that Hong Kong remains committed to becoming a regional crypto hub, the finance secretary described:
As some cryptocurrency exchanges crashed one by one, Hong Kong became a quality benchmark for digital asset companies.
He added that Hong Kong has a robust regulatory framework for cryptocurrencies that “matches international norms and standards.”
Joseph Chan, undersecretary for financial services and the treasury of the Hong Kong government, revealed at the same event that the city is preparing to issue more licenses for digital asset trading firms. Additionally, he is planning a consultation on crypto platforms to explore the potential of retail participation in the sector.
Hong Kong is pushing to become a regional crypto hub despite the collapse of cryptocurrency exchange FTX and several other crypto firms filing for bankruptcy. Last month, the city’s Securities and Futures Commission (SFC) issued a statement warning of the risks associated with crypto platforms that offer deposits, savings, earnings, and staking services.
After years of strict regulations, Hong Kong is now pushing to make it easier for retail investors to trade cryptocurrencies. Elizabeth Wong, director of licensing at SFC and head of the fintech unit, said in October last year: ‘We have four years of experience regulating this sector… We think this could be a really good time to think carefully. if we continue with this requirement for professional investors only”.
In November last year, Julia Leung, another SFC executive, said the regulator was “actively seeking” to put in place a regulatory framework that would allow retail investors to trade exchange-traded funds (ETFs) with exposure to cryptocurrency futures. In December, the city’s first cryptocurrency futures ETFs were launched.
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