Hong Kong has renewed its push to establish itself as a regional crypto hub, even as the digital asset industry continues to deal with the fallout from the collapse of FTX and other failed firms. Speaking at a Web3 summit held at Cyberport, Financial Secretary Paul Chan Mo-po said the city remains committed to that goal and argued that, as some exchanges fell one after another, Hong Kong became a strong base for digital asset companies.
Chan said Hong Kong has built a robust crypto regulatory framework that aligns with international norms and standards. The message is clear: rather than stepping back after the sector’s recent turmoil, the city wants to position regulation as a competitive advantage and attract digital asset businesses seeking a more predictable operating environment.
Licensing expansion and retail access under review
At the same event, Joseph Chan, undersecretary for financial services and the Treasury, said Hong Kong is preparing to grant more licenses to digital asset trading firms. He also said the government plans to launch a consultation on crypto platforms to explore the potential for retail participation in the sector. That would mark an important shift for a market that has historically leaned toward restricting access to professional investors.
At the same time, authorities are continuing to stress risk awareness. Hong Kong’s Securities and Futures Commission previously warned investors about the risks tied to crypto platforms offering deposit, savings, earnings, and staking services. This suggests the city’s strategy is not one of deregulation, but of expanding the market while keeping risk controls and investor protections in focus.
A gradual shift in regulatory stance
After years of relatively strict oversight, Hong Kong has begun reassessing whether retail investors should have broader access to crypto products. Elizabeth Wong, the SFC’s director of licensing and head of fintech, said the regulator now has four years of experience regulating the industry, making it a reasonable time to reconsider the professional-investor-only approach.
Another SFC executive, Julia Leung, also said the regulator was actively studying a framework that would allow retail investors to trade ETFs with exposure to crypto futures. In December, Hong Kong launched its first crypto futures ETFs. Taken together, these moves show the city is trying to strengthen its position as a regional crypto center through clearer rules, broader market access, and regulated product development.