TechFlow news, September 14 — According to Cointelegraph, First Digital Trust, a Hong Kong-based stablecoin issuer, said that Hong Kong should accelerate regulation in the digital asset sector to avoid falling behind in the rapidly evolving industry. Although Hong Kong aims to become a global cryptocurrency hub, only two virtual asset trading platforms—Hash Blockchain and OSL Digital Securities—currently hold full licenses, while many others are still awaiting comprehensive operating licenses.
First Digital CEO Vincent Chok said in an interview that it's understandable Hong Kong has adopted a more conservative and cautious approach to exchange regulation, as investor protection remains a priority. However, he emphasized the need for faster regulatory progress to keep pace with industry developments. First Digital Trust believes Hong Kong is not yet ready to regulate USD-backed stablecoins, whereas Dubai has taken a more globally oriented approach. Chok expressed hope that Hong Kong will introduce regulations for USD-backed stablecoins in the near future.
In addition, Chok does not believe banks will rush into providing digital asset custody services, as this falls beyond their risk tolerance. Many companies have already established trust structures to offer cryptocurrency custody services.
