The CEO of the Securities and Futures Commission (SFC) of Hong Kong, Julia Leung Fung-yee, stated that crypto trading is a significant pillar of the virtual asset ecosystem.

In her speech, Leung reportedly shed light on the fact that the new licensing system for virtual asset providers would ensure the safety of investors while considering the risks faced by financial institutions.

In Leung’s perspective, entrenching virtual assets providers into the regulatory system was the only way towards embracing innovation and bolstering market trust following the bankruptcy of the infamous FTX crypto exchange.

Hong Kong has established itself as a regional crypto hub, and the SFC CEO argues that Hong Kong’s approach towards cryptocurrency licensing contrasts with the “one country, two systems” policy of China. Hong Kong differentiated its approach by building a crypto-friendly environment for participants, while China has banned cryptocurrencies since 2021.

The Hong Kongese government allocated 50 million yuan ($7 million) to speed up Web3 development and because of such move, more than 150 crypto firms have established operations in Hong Kong’s Cyberport over the past year– a digital hub formed by the local government in efforts towards fostering innovation.

Sources:

https://cointelegraph.com/news/crypto-trading-is-important-virtual-asset-ecosystem-hong-kong-sfc-chief

https://cointelegraph.com/news/hong-kong-says-cyberport-attracted-150-web3-firms-in-a-year

https://gbcode.rthk.hk/TuniS/news.rthk.hk/rthk/ch/component/k2/1706032-20230623.htm?spTabChangeable=0