Despite the restrictions that will be placed on retail investors, Leung made it clear that they are moving towards positioning Hong Kong as the default center for assets. “We aim to have an appropriate regulatory framework in place to protect the interests of all investors and promote Hong Kong as a virtual asset hub,” she said.

The CEO also noted that proper regulation could prevent problems, such as the collapse of the FTX exchange, from occurring in Hong Kong.

In a recent event, Hong Kong Financial Secretary Paul Chan said that many crypto companies are asking to set up shop in Hong Kong. The official highlighted that the government is doing its best to provide proper oversight of the encryption space and to realize the potential of Web3 technology.

Related: Hong Kong brokers line up for SFC approval ahead of new virtual asset trading legislation

Digital assets have recently been a hot topic in the Special Administrative Region. On January 5, a Hong Kong official floated the idea of turning the digital Hong Kong dollar into a stablecoin. Wu Jiezhuang, a member of the Legislative Council, believes that this can address the risks associated with Web3 digital assets.

Source: CoinTelegraph