Hong Kong reaffirms its commitment to becoming a regional crypto-currency hub

Hong Kong has reaffirmed its commitment to becoming a regional crypto-currency hub following the collapse of crypto-currency exchange FTX. “As some crypto-currency exchanges collapsed one after another, Hong Kong became a quality hub for digital asset companies“, said a senior government official.

Hong Kong wants to become a regional crypto-currency hub

Hong Kong Financial Secretary Paul Chan Mo-po reaffirmed the city’s commitment to crypto-currency at a web3 summit at Cyberport on Monday.

Stressing that Hong Kong remains committed to becoming a regional crypto-currency hub, the financial secretary described:

While some crypto-currency exchanges were collapsing one after another, Hong Kong has become a quality home base for digital asset companies.

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

Joseph Chan, the Hong Kong government’s undersecretary for financial services and treasury, revealed at the same event that the city is preparing to issue more licenses for digital asset trading firms. In addition, it is planning a consultation on crypto-currency platforms to explore the potential for retail participation in the sector.

Hong Kong is pushing to become a regional crypto hub despite the collapse of crypto exchange FTX and several other crypto firms that have filed for bankruptcy. Last month, the city’s Securities and Futures Commission (SFC) issued a report on the development, warning of the risks associated with crypto-currency 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 in crypto assets. Elizabeth Wong, director of licensing at the SFC and head of the fintech unit, said last October, “We’ve had four years of experience regulating this industry … We think this may actually be a good time to really think carefully about whether we’re going to continue with this professional investor only requirement.“

In November of last year, Julia Leung, another SFC leader, said that the regulator “is actively seeking“to establish a regulatory framework that allows retail investors to trade exchange-traded funds (ETFs) with exposure to crypto-currency futures. In December, the first crypto-currency futures ETFs were launched.