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.

See related article: Hong Kong seeks to allow crypto futures ETFs 

Fast facts

  • 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.

See related article: Hong Kong announces policies to win back role as digital asset hub