Hong Kong's chief securities regulator, Leung Fung Yee, acknowledges that the Hong Kong Securities Regulatory Commission's goal is not to make Hong Kong a cryptocurrency trading hub, but that cryptocurrency trading is an important part of the virtual asset ecosystem and that related technologies noted that it welcomes its application to financial services, including bond tokenization and mutual funds.
Leung, head of the Hong Kong Securities Regulatory Commission (HKSRC), made statements at a forum on digital finance and innovation. He said that HKSRC is aware of the risks and challenges posed by crypto assets, especially after the collapse of FTX, a major crypto exchange that filed for bankruptcy in November 2022.
Leung also stated that Hong Kong's crypto licensing system is a clear example of China's "one country, two systems" policy, which gives the city a high degree of autonomy. He said that while cryptocurrencies are banned in mainland China, Hong Kong allows them to operate under a regulated framework.
He stressed that Hong Kong's regulation of virtual assets is transparent, consistent and predictable:
“I understand that Hong Kong still has a long way to go to build a virtual asset ecosystem, but I believe the pace of development will increase as the virtual asset fintech community gathers in Hong Kong.”
*Not investment advice.