Hong Kong’s Financial Secretary Highlights Focus on CBDCs and Virtual Asset Trading

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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October 23, 2024 12:54 EDT

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Speaking at the FinTech Innovation Lab Asia-Pacific 2024 Demo Day on Tuesday, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, emphasized the government’s focus on Central Bank Digital Currencies (CBDCs), mobile payments, and virtual asset trading.

According to a Wednesday report by Ming Pao, Hui’s speech at the event co-hosted by Accenture and Hong Kong Cyberport focused on how financial technology, especially CBDCs, could elevate Hong Kong’s digital financial systems.

Hong Kong’s Aim for Regional Leader in Digital Asset

Hui discussed integrating advanced financial technologies to enhance Hong Kong’s digital finance capabilities and support the adoption of digital currencies and virtual banking.

He highlighted the role of CBDCs in offering secure and efficient payment options.

He also suggested their potential integration into Hong Kong’s existing financial systems.

The report noted that the FinTech Innovation Lab Asia-Pacific 2024 showcased innovative solutions from startups specializing in digital assets and financial technology.

Participants from major institutions like HSBC, JPMorgan Chase, and AXA offered insights into the evolving financial technologies landscape, including virtual banking and InsurTech.

Hong Kong CBDCs and Crypto Trading Licenses

Hong Kong’s Securities and Futures Commission (SFC) has recently issued its third license under the new crypto trading platform regime, granting approval to HKVAX following OSL and HashKey.

The SFC is considering applications from 11 more platforms that are currently on its “deemed-to-be-licensed” list.

These include firms that have submitted applications and are undergoing the regulatory review process under the updated framework.

Hong Kong’s licensing framework, established in June 2023, allows crypto exchanges to serve retail investors, positioning the city as a potential hub for the virtual asset industry.

However, some local lawmakers have criticized the rules as being too stringent, which has led to several firms withdrawing their applications.