Hong Kong has reaffirmed its commitment to becoming a regional cryptocurrency hub following the demise of crypto exchange FTX. “Hong Kong has become a high-quality location for digital asset companies as certain cryptocurrency exchanges have collapsed one after another,” said a senior government official.
Hong Kong Aims to Become a Regional Crypto Hub
Hong Kong’s Finance Minister Paul Chan Mo Paw reaffirmed Hong Kong’s commitment to cryptocurrencies at the web3 summit at Cyberport on Monday.
The Treasury Secretary emphasized Hong Kong’s continued commitment to becoming a regional crypto hub, explaining:
Hong Kong has become a high-quality position for digital asset companies as certain crypto exchanges collapse one after another.
He added that Hong Kong has a strong regulatory framework for cryptocurrencies that is “in line with international norms and standards.”
The Hong Kong government’s undersecretary for financial services and Ministry of Finance Joseph Chan revealed at the event that the city is preparing to issue more licenses to digital asset trading firms. In addition, we are planning discussions on a cryptocurrency platform to explore the potential for retail participation in the industry.
Hong Kong is pushing to become a regional cryptocurrency hub despite the collapse of crypto exchange FTX and several other crypto companies 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 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. SFC Director of Licensing and Head of Fintech Division Elizabeth Wong said last October: Whether to continue this professional investor only requirement. ”
In November last year, another SFC executive, Julia Leung, said regulators would set up a regulatory framework that would allow retail investors to trade exchange-traded funds (ETFs) with exposure to cryptocurrency futures. said it was “actively considering.” In December, the city’s first cryptocurrency futures ETF was launched.
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