Under Secretary for Financial Services and the Treasury, Joseph Chan, acknowledged the financial innovation potential of virtual assets while also recognizing the emerging complexities they introduce to the financial system.
The proposal raised in the Legislative Council on December 11 reflects mounting pressure to develop a more comprehensive approach to crypto regulation. Lawmakers are exploring potential strategies, including the possible establishment of a dedicated department or commissioner to oversee crypto policies — a move aligned with international regulatory trends.
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Chan emphasized Hong Kong’s commitment to maintaining international regulatory standards, though he provided limited details about specific planned adjustments.
The government appears cautious, with the current stance indicating that crypto-assets remain a marginal consideration for the city’s Exchange Fund.
Speculation continues about whether cryptocurrencies might eventually be included in Hong Kong’s fiscal reserves. The Acting Secretary’s comments suggest an open yet measured approach, recognizing the sector’s potential while maintaining significant regulatory prudence.
