Hong Kong unveils policies to develop virtual-assets industry challenging Singapore for hub status

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Hong Kong will introduce a new licensing regime for virtual-asset providers and tokenisation of green bonds while allowing retail investors to trade digital assets

The government says it will introduce steps in line with international standards to allow virtual-asset innovations to sustainably thrive in the city

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Hong Kong’s Financial Secretary Paul Chan speaks virtually during the Hong Kong Fintech Week on Monday. The conference runs up to November 4. Photo: Bloomberg

Enoch YiuandXinmei Shen

Published: 1:33pm, 31 Oct 2022Updated: 2:29pm, 31 Oct 2022

Hong Kong has proposed a range of measures to develop the virtual-assets industry to promote the city as an international cryptocurrency hub as it vies with Singapore for the crown.

The measures, announced by the government in a policy statement and elaborated by ministers and regulators on Monday, include a new licensing regime for virtual asset providers, tokenisation of green bonds and allowing retail investors to trade cryptocurrencies.

“We will put in place timely and necessary crash barriers to mitigate actual and potential risks in line with international standards, so that virtual asset innovations can thrive in Hong Kong in a sustainable manner,” the statement released at the start of FinTech Week on Monday said.

Singapore is also hosting a similar forum this week.

Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, speaks during the Hong Kong FinTech Week, on Monday. Photo: Bloomberg

“Our policy stance on virtual assets is now clearly communicated to the global markets and it serves to demonstrate our commitment and determination to explore financial innovations together with the global virtual-asset community,” Financial Secretary Paul Chan Mo-po said via a video link. Chan could not attend in person as he caught Covid during a visit to the Middle East last week.