As part of a larger initiative to restore Hong Kong’s status as a financial center, the city has planned to start talking about legalizing cryptocurrency trading by private investors with the goal of becoming a global hub.
The government revealed on Monday that the consultation would cover the topic of “allowing the retail sector a reasonable degree of access.” The city announced that it was extending an invitation to international cryptocurrency exchanges to assess the market potential and potential initiatives to develop a new licensing system for virtual assets.
Hong Kong announced that it is “open to the potential” of listing cryptocurrency exchange-traded funds under the broad purpose of “sustainable and responsible development” of the digital-token sector.
The policy statement, according to Financial Secretary Paul Chan, “explains in detail our vision and approach, regulatory frameworks, perspectives on investors’ exposures, and our pilot initiatives to embrace the technological benefits and financial innovations brought by virtual assets.”
Hong Kong indicated in a distinct policy paper that it “will be alert and careful about the dangers to retail investors,” that it will enhance education, and that it will make sure the appropriate regulatory framework is in place.
At the Hong Kong FinTech Week, the new approach for digital tokens was unveiled.
Sam Bankman-Fried, the CEO of the bitcoin exchange FTX, and Yat Siu, the chairman of Animoca Brands Corp., both took part in person or by video.
Bankman-Fried asserts that it’s “certainly not too late,” referring to Hong Kong’s initiatives to catch up to and even pioneer the regulation of virtual assets.
The CEO of cryptocurrency brokerage Metapha, Adrian Wang, says that this is a wonderful move since it makes it clear that Hong Kong is using a new approach to govern its capital market.
Looking back, significant exchanges like Binance and FTX once had their corporate offices in Hong Kong, but quickly relocated to China. The new policies might entice these well-known figures to return to HK.
