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Hong Kong Promotes Fair Rules for Crypto and Traditional Finance
Key Takeaways
- Hong Kong promotes a “responsible and sustainable” approach to digital asset regulation at the World Economic Forum in Davos;
- Paul Chan said finance and technology must grow together responsibly, with strong safeguards for markets and investors;
- Hong Kong applies “same activity, same risk, same regulation” and continues expanding its fintech sector with tokenised bonds.
At the World Economic Forum in Davos, Financial Secretary Paul Chan Mo-po said Hong Kong’s approach to digital asset regulation is “responsible and sustainable".
According to a report by the South China Morning Post, during a January 20 session, Chan noted that finance and technology support each other, but their growth must be balanced.
He shared that Hong Kong sees digital assets as a tool to improve transparency, strengthen risk control, and make capital flow more efficiently.
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Chan stated, “We view digital assets as a financial innovation that we should embrace proactively". He added that the goal is to make digital assets serve the real economy while maintaining safeguards to protect markets, investors, and financial stability.
Chan explained that Hong Kong follows the rule of "same activity, same risk, same regulation". This means that any financial activity, whether traditional or digital, should face the same level of oversight.
He also mentioned that the government and regulators aim to act as “market enablers", which shows leadership through clear policies and action.
Hong Kong has been working to strengthen its role as a fintech hub in recent years. Since 2023, the city has issued three batches of tokenised green bonds worth a total of US$2.1 billion.
The Hong Kong Securities & Futures Professionals Association (HKSFPA) recently asked the government to adjust parts of its plan to apply new global crypto reporting standards from the OECD. What did the association say? Read the full story.