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Hong Kong Lawmaker Addresses Vitalik Buterin’s Concerns on City’s Crypto-Friendliness

Jai Pratap
Last updated: | 1 min read
Source: a video screenshot, Tech Vision / YouTube

Hong Kong legislator Johnny Ng has extended an invitation to Buterin to gain a firsthand understanding of the region’s regulatory environment and crypto-related strategies after the Ethereum co-founder questioned the city’s crypto-friendliness.

Ng asserted that Hong Kong boasts a stable policy framework for cryptocurrencies, emphasizing that its strategies and regulations have garnered broad social consensus and have undergone comprehensive procedures. 

Ng further highlighted the city’s willingness to develop policies surrounding virtual assets, welcoming global compliance companies to establish their operations in the region.

Buterin had expressed concerns regarding the long-term crypto-friendliness of Hong Kong. 

He noted that while the city currently appears crypto-friendly, it is essential for crypto projects to have confidence in the region’s ongoing friendliness, considering potential regulatory, political, and other unforeseen events in the future.

Hong Kong Lawmaker Clarifies City’s Vision on Crypto Regulations

Ng defended Hong Kong, describing it as a “special administrative region with complete procedures for formulating policies and laws.”

He emphasized the extensive consultation process that occurs during policy and legislation development, with both the government and the public actively participating.

Buterin’s reservations regarding the stability of Hong Kong’s crypto-friendliness remain a topic of discussion.

Buterin Questions Hong Kong’s Crypto-Friendly Stance in Long Term

During the Web3 Transitions Summit in Singapore, Buterin questioned whether Hong Kong would remain friendly to crypto projects in the face of evolving circumstances. He admitted that his understanding of Hong Kong and its complex interactions with the mainland was limited. 

He acknowledged that the city is currently crypto-friendly but raised the critical question of how stable this friendliness would be over the long term.

In contrast to the broader crackdown on crypto trading and mining seen in neighboring mainland China, Hong Kong has adopted a more welcoming approach towards crypto firms. 

In October 2022, Hong Kong authorities issued a series of policy statements aimed at bolstering its status as a global financial hub

The Hong Kong Legislative Council passed an amendment that introduced a comprehensive licensing system for virtual asset service providers in December last year, which became effective in June.