The Hong Kong SAR government should establish a virtual assets regulatory committee to negotiate, cooperate and coordinate with relevant mainland departments

In his recently published article "Challenges and Prospects of Hong Kong Virtual Asset Platform License", Chen Zhihua, President of the Hong Kong Securities and Futures Association, deeply analyzed the complex challenges and broad prospects that Hong Kong currently faces in the field of virtual asset supervision. Prospects. Chen Zhihua clearly pointed out that the mainland’s strict prohibition on virtual currency transactions and services has made the Hong Kong Securities and Futures Commission’s license review of virtual asset platforms extremely complicated. Especially when it comes to the actual controller or parent company of the platform, it must be ensured that they do not violate relevant mainland laws. This undoubtedly makes it more difficult for Hong Kong virtual asset platforms to apply for licenses, and almost requires entities in Hong Kong to contact their parent companies. Completely separated.

In response to this dilemma, Chen Zhihua suggested that the SAR government should take practical and effective measures to deal with the problems caused by multiple supervision. He proposed that establishing a unified virtual asset supervision committee is undoubtedly a wise move. This committee will be responsible for coordinating the work of different regulatory agencies and ensuring that regulatory standards in the field of virtual assets are both consistent and effective. Through this move, Hong Kong can not only maintain its leading position in the global virtual asset market, but also further enhance the transparency and professionalism of its regulatory system.

Chen Zhihua also put forward four specific suggestions.

First of all, improve the regulatory system to make it more adaptable to the characteristics and development needs of the virtual asset market.

Secondly, the SAR government should actively engage in dialogue with relevant mainland departments to seek cooperation and collaboration in the supervision of virtual assets, so as to break geographical restrictions and achieve broader regulatory cooperation.

Third, strengthen cross-department collaboration to ensure that various departments can form synergy in the supervision of virtual assets and avoid supervision gaps and duplication of work.

Finally, simplify and accelerate the licensing procedures and provide applicants with clear approval timetables and transparent expectations, thereby attracting more high-quality virtual asset platforms to settle in Hong Kong.

In April this year. The Federation of Hong Kong Securities and Futures Professionals published a letter to the Hong Kong Treasury Bureau on its official website, "Proposing to establish an independent self-regulatory organization for the development of the securities industry, futures industry, asset management industry and virtual asset industry", pointing out that including our country, the world Many economically developed regions have established statutory semi-official industry self-regulatory institutions that focus on industry development and maintenance of market ecology. Hong Kong can refer to a similar approach and form a self-regulatory institution with industry development as its core function by industry stakeholders. Responsible for formulating and implementing business conduct rules in areas such as promoting a healthy competitive environment in the industry, coordinating the number of licenses issued, reviewing advertising, and advocating to improve the corporate governance level of securities companies, aiming to ensure the long-term healthy development of the industry as a whole and enhance the competitiveness of the Hong Kong securities market in the global market. , consolidating its status as an international financial center. In terms of supervision, the powers of the Securities and Futures Commission’s Licensing Division also need to be placed in self-regulatory institutions, while other market supervision powers remain unchanged.

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