Chen Haolian: The Hong Kong government will ensure that the regulatory system reduces the actual and potential risks of virtual assets

Hong Kong's Deputy Director of Financial and Treasury Bureau, Chen Ho-lim, stated in his speech at the Asian Financial Forum that the authorities are actively involved in promoting the development of virtual assets and third-generation internet ecosystems. They plan to amend regulations to include over-the-counter trading of virtual assets in the scope of regulation. Chen Ho-lim pointed out that the government will ensure that the regulatory system manages and reduces the actual and potential risks of virtual assets, while providing a transparent and predictable regulatory environment for industry development. Web3 is a rapidly developing field based on blockchain technology, and Hong Kong has always emphasized the resilience of its financial markets, including virtual assets. He said that more than 20 economies and over 170 companies related to third-generation internet have set up entities in Hong Kong. The virtual asset trading platform operator licensing system was implemented in June last year, and two virtual asset trading platform operators have been licensed. The Securities and Futures Commission is also reviewing applications submitted by more than 10 platform operators. The proposed stablecoin regulatory system was published for public consultation in December last year, and the Monetary Authority will launch a sandbox arrangement to promote exchanges of opinions between regulatory authorities and the industry.