Hong Kong has reaffirmed its commitment to become a regional crypto hub following the collapse of cryptocurrency exchange FTX.” A senior government official said, “Hong Kong has become a quality standout for digital asset companies as certain crypto exchanges have collapsed one after another.
Hong Kong aims to become a regional crypto hub
Hong Kong Finance Secretary Paul Chan Mo-Po reaffirmed Hong Kong’s commitment to crypto at the Web3 Summit at Cyberport on Monday.
Emphasizing Hong Kong’s continued commitment to becoming a regional crypto hub, the Finance Secretary explained,:
the collapse of a series of specific crypto exchanges has made Hong Kong a quality location for digital asset companies.
He added that Hong Kong has a robust regulatory framework for crypto that is “consistent with international norms and standards.”
Joseph Chan, undersecretary of the Hong Kong government’s Department of Financial Services and Finance, revealed at the same event that Hong Kong is preparing to issue a number of licenses for digital asset trading companies. In addition, they are planning talks on crypto platforms and exploring the possibility of retail participation in this industry.
Hong Kong is pushing to become a regional crypto hub despite the collapse of the crypto exchange FTX and several other crypto companies filing for bankruptcy. Last month, Hong Kong’s Securities and Futures Commission (SFC) issued astatementwarning about the risks associated with crypto platforms offering deposit, savings, earnings, and staking services.
After years of strict regulation, Hong Kong is now pushing to make it easier for retail investors to trade crypto assets, Elizabeth Wong, the SFC’s licensing director and head of fintech, said last October.” We have had four years of experience regulating this industry … We think it might actually be a good time to really think carefully about whether to continue this professional investor-only requirement.”
Last November, another SFC executive, Julia Leung, said the regulator was “actively considering” setting up a regulatory framework that would allow retail investors to trade exchange-traded funds (ETFs) with cryptocurrency futures exposure.In December, the city’s firstcrypto futures ETFwas launched.
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