cryptoknowmics.com
Hong Kong Financial Secretary Paul Chan Mo-po reaffirmed Hong Kong's commitment to becoming a regional crypto hub at a web3 summit in Cyberport on Monday. The financial secretary highlighted that Hong Kong became a quality standing point for digital corporates while crypto exchanges collapsed one after another around the world. He also added that Hong Kong has a robust regulatory framework for digital assets that are in line with international norms and standards.
Hong Kong Pushing Toward Becoming the Regional Crypto Hub
Hong Kong has been trying to emerge as a regional crypto hub for quite some time. The city's Securities and Futures Commission (SFC) issued a statement last month warning about the risks associated with crypto platforms offering savings, deposits, earnings, and staking services. Joseph Chan, the undersecretary for financial services and the Treasury for the government of Hong Kong, also revealed at the summit that Hong Kong is planning to issue more licenses for digital asset trading firms. Moreover, it is preparing for a consultation on crypto platforms to explore the potential for retail participation in the crypto sector.
Easing Regulations to Encourage Crypto Trading
After years of stringent regulations, Hong Kong is now trying to make it easier for retail investors to trade crypto assets. Last year in October, Elizabeth Wong, the SFC’s director of licensing and head of the fintech unit, said that the moment was opportune for authorities to make a call on whether they wanted to continue with the ongoing professional investor-only requirement. A month later, another SFC executive Julia Leung revealed that the regulator was actively looking to set up a regulatory framework that would allow retail investors to trade ETFs, with exposure to cryptocurrency futures.