Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at [email protected] or filling in this Google form. Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification As the 14th Annual International Conference on the Chinese Economy wrapped up and the city warms up for its
FinTech Week later this month, Hong Kong’s vocation for integrating
digital assets into its financial infrastructure is taking shape.
The city’s drive to become a cross-border financial hub for blockchain and tokenised assets is a balancing act: approaching institutional innovation with caution while not falling behind by being overly cautious.
In my previous role as director of government affairs at the world’s largest crypto exchange, I observed different jurisdictions’ path of self-discovery in their approach to digital asset regulation. The US stood out for its market size and influence (despite regulatory uncertainty), while Dubai embraced an openly crypto-friendly stance. Hong Kong, competing with
Singapore, had the potential to bridge East and West in financial and digital integration.
However, Hong Kong’s trajectory seemed underwhelming from afar. Despite its
exchange traded funds (ETFs),
regulatory sandboxes and a reputation as a global financial hub, the city did not seem to be achieving its full potential in the digital assets space.
After a few weeks in Hong Kong, my perspective is shifting. The city and its financial institutions are playing a longer game than many realise. Rather than pushing for retail crypto trading, Hong Kong is laying the groundwork for the more ambitious goal of becoming a regulatory hub for institutional digital assets, particularly in international trade – an important bet as the financial sector constitutes nearly a quarter of its gross domestic product.
