According to Odaily, despite recent withdrawals, the recent 'perceived licensed' exchanges have still sparked some optimism about the future of Hong Kong's virtual asset market. Hong Kong Legislative Council member Qiu Dageng recently questioned the impact of exchange withdrawals on Hong Kong's Web3 development. However, many industry insiders believe that the Hong Kong Securities and Futures Commission's 'safety first' regulatory approach to virtual asset trading platforms is valuable.
Alessio Quaglini, co-founder and CEO of Hong Kong cryptocurrency custody provider Hex Trust, stated that the withdrawal of applications by virtual asset trading platforms is natural. This is due to the need to balance the scale of the Hong Kong retail market and high regulatory costs, as well as the impact on their global business. If the goal is to position Hong Kong as a global hub, then a strict regulatory framework strategy is reasonable, but execution should be improved.
Jonathan Crompton, a partner at Hong Kong RPC Law Firm, stated that the core principles of the Hong Kong Securities and Futures Commission's regulation of cryptocurrencies emphasize investor protection. It requires participants in the virtual asset market to meet the same standards as participants in traditional financial markets. The withdrawal of exchange license applications indicates that the Hong Kong Securities and Futures Commission will not let the market go at all costs.