Financial Secretary Paul Chan highlighted the importance of being “steady and cautious” once promoting the event of the virtual asset industry in Hong Kong.
Just days when Binance CEO Changpeng “CZ” Zhao warned concerning the onset of larger restrictive scrutiny amid the FTX collapse, the monetary Secretary of Hong Kong entailed a stronger focus on transparency and correct supervision when dealing with virtual assets.
Financial Secretary Paul Chan highlighted the importance of being “steady and cautious” once promoting the event of the virtual plus trade in Hong Kong. an advert attendant Chan’s post, roughly translated to:
“While actively embracing innovation, there must be a regulatory package that adapts and keeps pace with the times to properly manage risks, create prerequisites for the orderly and vigorous development of the market.”
In October, the Hong Kong government issued a policy — Policy Declaration on the event of Virtual Assets in Hong Kong — introducing a restrictive framework and risk-based restrictive direction. additionally, the govt. planned many pilot initiatives to check and enhance the technologies powering virtual assets.
According to Chinese reporter Colin Chinese, Chan’s post are often seen as a manifesto to welcome cryptocurrency companies round the world. In her words:
“The Financial Secretary of Hong Kong said that because of the bankruptcy of FTX, transparency and proper supervision must be strengthened.”
Chan didn’t take offense at FTX’s collapse. Instead, he highlighted the importance of maintaining safety and properly managing risks, explaining that:
“We must not only make full use of the potential brought by innovative technologies, but also be careful to guard against fluctuations and potential risks that may be caused by them, and avoid these risks and impacts from being transmitted to the real economy.”
In addition, his advice for crypto companies was to keep up separate accounts for keeping consumer assets. As pointed out by Wu, Chan additionally counseled crypto businesses put aside actual in operation expenses for a minimum of 12 months, among other needs.
On an finish note, Chan reiterated that a stable and property crypto industry would become a reality with clear operations and correct and appropriate supervision.
( Arijit Sarkar, Cointelegraph, 2022 )