Hong Kong Proceeding with Crypto Licensing Despite Lack of Alternatives Says FinTech Chair

Hong Kong, known for its crypto-friendly environment, remains enthusiastic about providing its citizens with access to crypto trading despite other regions taking a more cautious approach, according to Neil Tan, the chair of the FinTech Association of Hong Kong (FTAHK).
During the Hong Kong WOW Summit in March, Tan told Cointelegraph that while countries like Singapore and the United States appear to be pulling back on allowing retail crypto trading, Hong Kong is moving forward.
Starting on June 1, a licensing system for crypto exchanges will be enforced, which will also cover retail trading, as mentioned by Tan. The specific guidelines for these licenses are anticipated to be revealed sometime in May.
In February, the region’s securities regulator proposed granting retail traders access to licensed crypto platforms under its licensing framework for Virtual Asset Service Providers (VASPs). It emphasized that restricting access could lead traders to unregulated platforms overseas. Currently, these platforms are restricted to serving accredited professional investors only.
In January, CEO of the Securities and Futures Commission (SFC) Julia Leung Fung-yee mentioned that retail traders would only have access to “highly liquid” digital assets, without providing further details.
Aside from offering an appealing legal structure for crypto activities, Hong Kong is also concentrating on attracting talent and infrastructure providers, which Tan referred to as “the back end.”
Tan highlighted that both the Chinese and Hong Kong governments acknowledge the potential in the region and are making efforts to support the influx of talent. He noted that there is a significant amount of talent available, especially from Big Tech companies, which can contribute to Hong Kong.
For Hong Kong to achieve its goal of becoming a virtual asset hub, there must be appropriate infrastructure in place to support crypto activities, Tan stated. He emphasized that when crypto platforms arrive, they bring along the necessary infrastructure to deliver their services.
Tan emphasized that opening up the financial industry to digital assets is a natural progression as cryptocurrencies gain more prominence.
In summary, Hong Kong is embracing the opportunities presented by the crypto industry and is determined to establish itself as a key player in the sector.