Hong Kong Reaffirms Its Will to Become Regional Crypto Hub

Hong Kong Reaffirms Its Will to Become Regional Crypto Hub

Hong Kong reaffirms its will to become a regional crypto hub despite the collapse of the crypto exchange FTX. "As certain crypto exchanges collapsed one after another, Hong Kong became a quality standing point for digital asset corporates," declared a top government official.

Hong Kong Pursues Becoming Regional Crypto Hub

Hong Kong Financial Secretary Paul Chan Mo-Po reaffirmed the city’s crypto commitment at a Web3 summit in Cyberport on Monday.

Hong Kong is committed to becoming a regional crypto hub, as the financial secretary described:

"As certain crypto exchanges collapsed one after another, Hong Kong became a quality standing point for digital asset corporates."

He added that Hong Kong has a robust regulatory framework for crypto that "matches international norms and standards."

Joseph Chan, the undersecretary for financial services and the Treasury for the government of Hong Kong, revealed at the same event that the city is planning to issue more licenses for digital asset trading firms. It will also launch consultations on crypto platforms to explore the potential for retail participation in the industry.

Hong Kong is Open to Retail Investors

Hong Kong is pushing to become a regional crypto hub despite the collapse of crypto exchange FTX and several other crypto firms filing for bankruptcy. The city’s Securities and Futures Commission (SFC) issued a statement last month, warning about the risks associated with crypto platforms offering deposits, savings, earnings, and staking services.

Hong Kong is finally allowing retail investors to trade crypto assets after years of strict regulations. Elizabeth Wong, the SFC’s director of licensing and head of the fintech unit, said in October last year, "We’ve had four years of experience in regulating this industry. We think that this may be the time to carefully consider whether we will continue with this professional investor-only requirement."

In November last year, Julia Leung, another SFC executive, said the regulator is "actively looking" to set up a regulatory framework that allows retail investors to trade exchange-traded funds (ETFs) with exposure to cryptocurrency futures. The city’s first crypto futures ETFs were launched in December.

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