TechFlow reports that Financial Services and Treasury Bureau Deputy Secretary Chan Hoi-lim said at the Asian Financial Forum that the government will actively promote the development of virtual assets and the Web3 ecosystem, and plans to amend legislation to bring over-the-counter virtual asset exchanges under regulatory oversight.
He emphasized that the government will ensure a robust regulatory framework to mitigate actual and potential risks associated with virtual assets, while providing a transparent and predictable environment for industry growth. He also noted Hong Kong's emphasis on financial market resilience, which extends equally to virtual assets. Currently, more than 20 economies and over 170 Web3-related companies have established a presence in Hong Kong. Since the implementation of the licensing regime for virtual asset trading platform operators in June last year, two platforms have been licensed, and the Securities and Futures Commission is reviewing applications from more than 10 other platforms. Additionally, the Monetary Authority will launch a sandbox initiative to facilitate dialogue between regulators and the industry.
