Hong Kong Doubles Down on Global FinTech Hub Goal With New Digital Assets Plans

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Hong Kong is doubling down on its ambition to become the global hub for digital finance, especially in virtual asset trading and cryptocurrency regulation.

Hong Kong is doubling down on its ambition to become the global hub for digital finance, especially in virtual asset trading and cryptocurrency regulation. That was the pronounced initiative from the keynote address by Christopher Hui, Secretary for Financial Services and the Treasury, at the Asia-Pacific Fintech Innovation Lab 2024 on Oct. 23.

It also embraces the entire spectrum of digital financial innovations, ranging from the development of central bank digital currencies (CBDCs) to the vibrant ecosystem of virtual asset trading. These technologies are considered the missing pieces to renew Hong Kong’s financial infrastructure and further develop its competitive edge in the global market.

"We see a revolution in financial services, and Hong Kong is trying to position itself at the leading edge of this revolution," Hui said in his speech. This is supported by speeding up the implementation of advanced payment systems, which are expected to increase efficiency within both domestic and regional markets.

The underpinning for this approach is the licensing regime for cryptocurrency exchanges. The Securities and Futures Commission (SFC) has just issued its third platform license under the new regulatory regime, following successful approvals of OSL and HashKey. This development marks a crucial milestone toward establishing a regulated virtual asset trading environment in Hong Kong.

#Since its inception in June 2023, the program has been met with much interest, with 11 more platforms now going through the review process. New licensees hope to attain the right to serve retail investors under Hong Kong's refreshed cryptocurrency trading laws.