Hong Kong Hints Crypto Regulatory Reforms Post FTX Crisis
- Hong Kong’s Financial Secretary emphasized the need for “steady and cautious” growth.
- Chan also emphasized the value of safety and effective risk management.
The Financial Secretary of Hong Kong has urged for a greater emphasis on transparency and adequate supervision when dealing with virtual assets, just days after Binance CEO Changpeng “CZ” Zhao warned of the advent of more regulatory scrutiny in the wake of the FTX crash.
Paul Chan, Hong Kong’s Financial Secretary, has emphasized the need for “steady and cautious” growth in the virtual asset sector. Along with Chan’s update was a banner that elaborated Chans words.
Value of Safety and Effective Risk Management
Earlier this year in October, the Hong Kong government announced a policy called the Policy Declaration on the Development of Virtual Assets in Hong Kong. Which established a regulatory framework and risk-based regulatory direction for the local virtual asset industry. There were also a number of pilot programmes suggested by the government. To evaluate and improve the technology behind virtual assets.
Colin Wu (@wublockchain), a reporter from China, and a crypto analyst claims that Chan’s statement might be seen as an open invitation to crypto businesses everywhere. If anything, Chan seemed unfazed by FTX’s demise. Instead, he emphasized the value of safety and effective risk management.
In addition, he suggested that crypto businesses have separate accounts where customers’ money may be kept safe. Along with the other conditions listed by Wu. Chan also suggested that firms dealing with cryptocurrencies save enough money to cover their running costs for a year.
Lastly, Chan emphasized that openness in business practices and adequate regulation are necessary for the crypto economy to become stable and sustainable. The FTX saga has left the crypto sector in utter shock.