Hong Kong FinTech Chair confirms crypto licensing to be implemented due to lack of alternatives

Hong Kong continues to embrace cryptocurrency trading despite regulatory headwinds

According to the Chair of the FinTech Association of Hong Kong (FTAHK), Neil Tan, the country is still enthusiastic about allowing its citizens access to cryptocurrency trading despite other jurisdictions taking a step back. Speaking at the Hong Kong WOW Summit in March, Tan stated that while countries like Singapore and the United States are seemingly moving away from permitting crypto retail trading, Hong Kong is taking the opposite direction. Starting on June 1, a licensing regime for cryptocurrency exchanges will come into effect in Hong Kong, which will also include retail trading. The licensing guidelines for this regime are expected to be released sometime in May. Tan is confident that this move will attract participants since there are no other legal and regulated options. He believes that it is a “build it and they will come” situation as the dwindling options are pushing traders towards illegal and unregulated overseas platforms. Apart from providing a robust legal framework for cryptocurrency trading, Hong Kong is also focusing on attracting talent and infrastructure providers to support this industry. Tan called this “the back end,” and he stated that both the Hong Kong and Chinese governments recognize the potential of this region and are taking measures to support inbound talent. Tan also noted that there is a considerable amount of talent across the border, and the unemployment rate is relatively high in that area. Hong Kong is capitalizing on this by welcoming talent from big tech companies and other sources. To realize its virtual asset hub ambitions, Hong Kong needs to have the necessary infrastructure in place to support cryptocurrency trading. Tan noted that when trading platforms come, they will bring with them the infrastructure required to deliver the product. Tan believes that the opening up of the financial industry to digital assets is a natural progression as cryptocurrencies become more prevalent. People are adopting crypto in their portfolios, whether they are retail traders, high net worth individuals, or institutional investors. In conclusion, Tan stated that Hong Kong is “back in business” and is opening up its cryptocurrency market to meet the growing demand for digital assets.