According to Odaily, Chen Zhihua, the president of the Hong Kong Securities and Futures Professionals Association, has written an article titled 'Challenges and Prospects of Hong Kong's Virtual Asset Platform Licensing'. He pointed out that mainland laws strictly prohibit foreign institutions from providing virtual currency trading and services to the mainland. If the Hong Kong Securities Regulatory Commission requires a license for the virtual asset platform, the actual controller or parent company cannot violate mainland laws. This is equivalent to requiring a complete separation between the entity in Hong Kong and the parent company.
To solve the problem of multiple supervision, the Special Administrative Region government should consider setting up a unified virtual asset regulatory committee. This committee would be responsible for coordinating the regulatory work of different institutions, ensuring the consistency and effectiveness of regulatory standards, and maintaining its competitiveness in the global virtual asset market. Chen Zhihua suggests the following four directions: 1. Improve the regulatory system. 2. The Special Administrative Region government must consult with relevant mainland departments to seek cooperation and synergy in virtual asset regulation. 3. Strengthen cross-departmental collaboration. 4. Simplify and accelerate the licensing process, establish a clear approval timetable, and provide transparent expectations for applicants.