A high-ranking official in Hong Kong has stated that the city is redoubling its efforts to establish itself as a leading center for cryptocurrency, following the failure of the FTX exchange.
Hong Kong Financial Secretary Paul Chan Mo-po confirmed the plan to pursue the city’s crypto commitment at a web3 summit in Cyberport Monday. The official declared that “As certain crypto exchanges collapsed one after another, Hong Kong became a quality standing point for digital asset corporates.”
Despite recent failures in the cryptocurrency industry, including the collapse of the FTX exchange and bankruptcies among other firms, Hong Kong is maintaining its focus on establishing itself as a leading center for digital assets. An official in the government of Hong Kong stated that the city has a strong regulatory framework that aligns with international standards for cryptocurrency.
Joseph Chan, the undersecretary for financial services and the Treasury for the government of Hong Kong, also announced that Hong Kong plans to issue more licenses for digital asset trading firms and is considering ways to involve retail investors in the industry through consultation on crypto platforms. The city’s Securities and Futures Commission (SFC) had previously issued a warning about the risks associated with crypto platforms offering certain types of services.
Hong Kong, which has previously maintained strict regulations on the trading of cryptocurrency, is now working towards making it easier for retail investors to participate in the market. It was learned that the agency is exploring ways to establish a regulatory framework that would permit retail investors to trade exchange-traded funds (ETFs) which have exposure to cryptocurrency futures. Last December, the city launched its first crypto futures ETFs, a indication of the push to open up the market to retail investors.