Hong Kong’s SFC holds third digital asset advisory meeting…discusses exchange liquidity and product expansion

Hong Kong’s financial regulators continued consultations with the industry to discuss the direction of regulatory development for the digital asset market and ways to strengthen the ecosystem.

According to the Securities and Futures Commission (SFC) of Hong Kong on the 7th, the commission said it held its third Digital Asset Consultative Group meeting the previous day and, together with licensed virtual asset trading platforms, discussed the future digital asset regulatory framework and the direction of industry development.

Key agenda items included measures to enhance liquidity at licensed platforms, as well as regulatory steps related to expanding the types of products and services to strengthen the digital asset ecosystem.

Elizabeth Yuen, Executive Director of the Intermediaries Division at the SFC and chair of the Digital Asset Consultative Group, said, “Hong Kong is working to build a dynamic and sustainable digital asset market,” adding that “it is important to maintain a balance between innovation and investor protection.” She added, “Through close collaboration with the industry, we will continue to develop practical and effective regulatory policies.”

Meanwhile, the SFC said it will continue cooperation with licensed platforms through the Digital Asset Consultative Group, focusing on the “relationships” pillar of the “ASPIRe Roadmap” announced in February last year, and will pursue the creation of a resilient and globally competitive digital asset ecosystem.