Julia Leung, head of the Hong Kong Securities and Future Commision, said that cryptocurrency platforms are part of the Web 3.0 ecosystem and have to be regulated from the perspective of investor protection, according to a local media report on Thursday.
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Fast facts
- Leung’s comment at the Boao Forum for Asia 2023, dubbed Asia’s Davos and held in China’s Hainan Province, follows Hong Kong’s efforts to develop the Web3 industry and reclaim its status as a financial and crypto hub.
- As Hong Kong establishes regulation of virtual asset service providers, over 80 companies have expressed interest in building Web3 businesses in the city, where at least eight crypto-related firms could receive licenses by the end of 2023.
- Also at the forum, deputy governor of China’s central bank, Xuan Changneng, continued China’s strict stance on crypto, using the collapse of major crypto exchange FTX to call out the lack of regulation in the market, local media reported on Friday.
- But Xuan lauded the convenience of stablecoins in cross-border payments, even as he warned that the asset class remained susceptible to scams and illegal trading.
- Alongside Hong Kong developing into a hub for Web3 and digital assets, China also recognises that Web3 could boost its digital economy. Chinese officials have been reportedly sighted mingling at Hong Kong crypto events, while China’s state-owned banks have started offering services to local crypto firms.
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