The Financial Secretary of Hong Kong has called for a stronger focus on transparency and proper supervision when dealing with virtual assets given the situation with FTX.
Financial Secretary Paul Chan highlighted the importance of being steady and cautious when promoting the development of the virtual asset industry in Hong Kong.
In October, the Hong Kong government issued a Policy Declaration on the Development of Virtual Assets in Hong Kong , introducing a regulatory framework and risk-based regulatory direction. In addition, the government proposed several pilot initiatives to test and enhance the technologies powering virtual assets.
According to reports, Chan’s post can be seen as a manifesto to welcome cryptocurrency companies around the world. Chan didn’t take offense at FTX’s collapse. Instead, he highlighted the importance of maintaining safety and properly managing risks. In addition, his advice for crypto companies was to maintain separate accounts for keeping client assets. Chan also recommended crypto businesses set aside actual operating expenses for at least 12 months, among other requirements.
