According to Odaily Planet Daily, despite the recent withdrawal of applications by exchanges, the recent "deemed to be licensed" exchanges have still inspired some optimism about the future of Hong Kong's virtual asset market. Hong Kong Legislative Council member Qiu Dagen recently published an article questioning the impact of exchange withdrawal on the development of Hong Kong's Web3, but many industry insiders believe that the Hong Kong Securities Regulatory Commission's "safety first" regulatory approach to virtual asset trading platforms is very valuable.
Alessio Quaglini, co-founder and CEO of Hong Kong cryptocurrency custody provider Hex Trust, said it was natural for the virtual asset trading platform to withdraw its application because it needed to balance the size of Hong Kong's retail market with high regulatory costs and the impact on its global business.
Jonathan Crompton, partner at RPC law firm in Hong Kong, said that the core principles of the Hong Kong Securities and Futures Commission's regulation of cryptocurrencies emphasize investor protection and require virtual asset market participants to meet the same standards as traditional financial market participants. The exchange's withdrawal of its license application shows that the Hong Kong Securities and Futures Commission will not let the market go at all costs.
