Experts Warn Slow Regulatory Moves May Stifle Crypto Growth in Hong Kong
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
As Hong Kong seeks to establish itself as a global cryptocurrency hub, experts are warning that the city’s cautious regulatory approach could hinder its growth in the rapidly evolving digital assets sector.
In a recent interview, First Digital Trust, a Hong Kong-based crypto firm, expressed concerns over the slow pace of regulation, emphasizing the need for faster progress to keep up with industry developments.
Currently, only two fully licensed virtual asset trading platforms, Hash Blockchain and OSL Digital Securities, are operational in Hong Kong.
Several other cryptocurrency exchanges are still awaiting their licenses, reflecting the city’s careful approach to regulating the industry.
Vincent Chok, CEO of First Digital, explained the rationale behind this measured pace, stating that Hong Kong prioritizes investor protection over swift regulatory action.
“It is understandable that Hong Kong’s regulatory approach is more conservative and slower compared to other jurisdictions, given its focus on safeguarding investors,” Chok said.
“We hope to see regulation move faster to ensure Hong Kong does not fall behind the fast-paced development of the industry.”
In an effort to tighten its grip on the sector, Hong Kong has made it a criminal offense to operate an unlicensed virtual asset trading platform (VATP) as of June 1.
The Securities and Futures Commission (SFC) also issued an “alert list” of suspicious and unlicensed trading platforms that may be targeting Hong Kong investors.
The move is part of broader efforts to ensure the
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