At a time when investors, holders, and industry players are bearish on all digital assets, the report shows that Hong Kong remains bullish in the cryptocurrency ecosystem after the FTX debacle.
Amidst the crypto winter and some incidents that have dampened investors' confidence in crypto, Hong Kong released a blog post.
On the 13th of November, Hong Kong's Financial Secretary, Paul Chan, released a blog post. The timing of the blog post comes days after FTX filed for bankruptcy and fell victim to a massive heist.
The SAR issued the report titled "Policy Declaration on the Development of Virtual Assets in Hong Kong."
According to Paul Chan, The country is open to receiving Virtual asset exchange-traded funds (ETFs). Similarly, he said the Securities and Futures Trading Commission would launch a public consultation on protection requirements for retail investors.
Part of the blog post reads that Hong Kong believes in the potential of blockchain technology. The Government highlights the potential benefits distributed ledgers and NFTs could bring to the financial industry.
Furthermore, the report clarifies the vision and policy of the country to develop the virtual asset industry. The development will also cover related innovative technologies, applications, and its ecosystem.
The visions and policies in the report show that Hong Kong has created favorable development conditions for the industry. Similarly, there are several pilot programs to test and improve the level and applicability of related technologies.
Paul Chan said,
This policy declaration shows our determination and commitment to exploring financial innovation together with the industry.
It also states our position on the virtual assets industry— while actively embracing innovation, there must be regulatory support that adapts and keeps pace with the times."
In this tweet, Paul Chan says industry regulation is more attractive to investors in the wake of FTX's collapse.
Furthermore, he said that the declaration had been recognized and supported by the virtual asset industry. He added that "We have received many positive responses. Many related companies are also actively considering expanding their operations in Hong Kong."
The Government of the Hong Kong Special Administrative Region released its report through a blog post. While announcing the report's details, the Financial Secretary, Paul Chan, highlighted the industry's potential.
Furthermore, he added that there are several pilot plans in the report. Appropriate regulatory and compliance requirements alongside the pilot plans will help avoid incidents like the FTX crash.
He, therefore, called on "friends in the innovative technology ecosystem" to work with Hong Kong.
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