Hong Kong remains bullish on virtual assets in the financial sector after the FTX debacle, while maintaining the view that regulation of businesses is a prerequisite for market development, said Hong Kong’s Financial Secretary Paul Chan in a blog post published on Sunday.
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- Chan said Hong Kong continues to welcome the introduction of virtual asset exchange-traded funds (ETFs), and that its Securities and Futures Commission will launch a public consultation on protection requirements for retail investors.
- Chan also highlighted the potential benefits that blockchain technology, distributed ledgers, and non-fungible tokens (NFTs) could bring to the financial industry.
- “The bursting of the Internet bubble in 2000 made many people wary of technological development, but the technology still follows its path, developing the platform economy and a network economy in a mobile terminal and the network environment,” he said.
- Regulations will “create the prerequisites for an orderly and robust market.”
- Chan said that the industry has reached a consensus that corporate governance regulation, financial and operational disclosure and investor protection will benefit the crypto industry in the long run.
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