New policy statement on virtual assets to be released

Hong Kong will soon reveal its second policy statement on the development of virtual assets to explore their potential for supporting traditional financial services and the real economy as the city continues its campaign to take the lead in the emerging sector.

The second statement will discuss how to leverage the advantages of traditional financial services and innovative technologies in the area of virtual assets and enhance security and flexibility of real economy activities, according to Financial Secretary Paul Chan Mo-po.

It will also encourage local and international companies to explore the innovation and application of virtual asset technologies.

The first policy statement on the development of virtual assets was issued in October 2022, setting out the government’s policy stance and approach toward developing a vibrant sector and ecosystem in Hong Kong.

The authorities will conduct consultation on the licensing regimes of over-the-counter trading and custodian services for virtual assets this year.

Ten licenses had been granted by the Securities and Futures Commission as of mid-February.

STAFF REPORTER