Hong Kong Aims to Become 'Virtual Asset Hub' - Unicorns Flock as Regulations Ease [Consensus Hong Kong 2025 On-site+]

'Consensus Hong Kong 2025' Held from 18th to 20th

Hong Kong Accelerates Regulatory Easing

Announces 'Virtual Asset Development Roadmap'

"High Possibility of Hong Kong Taking Leadership"

Hong Kong Financial Secretary Paul Chan speaks at 'Consensus Hong Kong 2025' held in Hong Kong on the 19th. Hong Kong=Reporter Young-min Lee

Hong Kong is actively easing virtual asset regulations. This measure aims to absorb capital from the rapidly expanding virtual asset market into the country. Analysts predict Hong Kong will establish itself as Asia's 'virtual asset hub'.

At 'Consensus Hong Kong 2025', the world's largest virtual asset conference held at the Hong Kong Convention Center (HKCEC) on January 19-20 (local time), 'regulatory easing' was the key focus. Hong Kong Financial Secretary Paul Chan, Securities and Futures Commission (SFC) Chairman Julia Leung, and other high-ranking regulatory officials attending the conference emphasized the easing of virtual asset regulations.

In particular, Secretary Chan expressed his determination to make Hong Kong a virtual asset hub. In his keynote speech at the conference the previous day (19th), he stated, "Hong Kong maintains consistent, predictable, and forward-looking policies with a balanced regulatory framework" and added that "Hong Kong is making massive investments in virtual asset-related infrastructure and talent development." He continued, "The virtual asset market is similar to the early stages of past innovative paradigms" and "Times of change are approaching, and Hong Kong is ready to lead this trend."

Announces 'Virtual Asset Development Roadmap'

On the 19th, coinciding with the opening of Consensus Hong Kong, Hong Kong also announced 'ASPIRe', a roadmap for fostering the virtual asset industry. The roadmap's essence is to more clearly organize virtual asset regulations and expand virtual asset products and services.

Elizabeth Wong, Head of Fintech Unit and Director at Hong Kong SFC, attended the Asian regulatory session and explained, "The (roadmap's) goal is to increase capital liquidity within Hong Kong and attract virtual asset-related business activities," adding that "We will bring more virtual asset-related activities like over-the-counter (OTC) trading into the regulatory framework."

Hong Kong Securities and Futures Commission (SFC) Chairman Julia Leung (left) speaks at 'Consensus Hong Kong 2025' held in Hong Kong on the 19th. Hong Kong=Reporter Jun-hyung Lee

Another goal of the roadmap is to promote traditional financial institutions' entry into the virtual asset market. Chairman Leung said at the Hong Kong regulatory session the previous day (19th), "(Hong Kong) is encouraging traditional financial institutions to participate in the virtual asset market based on clarity, certainty, and consistency," adding that "When traditional financial institutions participate in the market, trust and efficiency in asset custody and anti-money laundering (AML) will increase."

She continued, "Global talent in Web3 and finance is gathering in Hong Kong. We are establishing a growth-centered regulatory framework and have revealed more specific strategies through the virtual asset roadmap," adding that "We plan to proceed with △virtual asset custody △stablecoins △OTC-related legislation and △expansion of staking △derivatives △margin lending services, △wallet policy adjustment △review of custody provider insurance standards △optimization of regulatory compliance procedures."

She also hinted at additional regulatory easing. Director Wong stated, "Currently, Hong Kong operates (one of) the strictest virtual asset regulatory frameworks (in the world)" and revealed that "We are checking if there are areas where the industry feels unnecessarily burdened by (regulations)." She continued, "(The authorities' goal is) to ease regulations while maintaining investor protection levels" and said "For example, we are considering adjusting custody requirements or the ratio between hot wallets and cold wallets."

"Trading Volume to Increase 40% with Derivatives Introduction"

Industry expectations are growing with Hong Kong's active regulatory easing moves. Terence Pu, Managing Director of Hashkey Exchange under Hong Kong's largest virtual asset company Hashkey Group, met on-site and said, "The 'ASPIRe' roadmap announced by SFC presents a clear and practical path for developing Hong Kong's virtual asset ecosystem over the next few years" and added that "The authorities have also shown their willingness to actively respond to industry feedback and continuously improve the regulatory framework."

Managing Director Terence Pu predicted that if virtual asset derivatives trading is allowed according to the roadmap, market trading volume would increase by 30-40%. He explained, "The introduction of virtual asset derivatives emphasized in the roadmap represents a growth opportunity (for the virtual asset industry)" and "(Derivatives) will increase liquidity and market vitality while providing investors with effective hedging means." He added, "The roadmap's insurance and compensation system improvement plans reflect SFC's efforts to protect market participants" and "It also focuses on addressing industry concerns."

Hashed Co-founder and Partner Ryan Kim (fourth from left) speaks at 'Consensus Hong Kong 2025' held in Hong Kong on the 20th. Hong Kong=Reporter Jun-hyung Lee

Global virtual asset exchange Gate.io also expressed expectations for Hong Kong's regulatory environment. Leo, Head of Strategic Planning and Collaboration at Gate.io, told BloomingBit, "After introducing the virtual asset exchange licensing system, the Hong Kong government is increasing market transparency by establishing a clear regulatory framework" and "These changes are also increasing institutional participation." He then stated, "Hong Kong has a high possibility of taking leadership not only in Asia but globally (in virtual assets)."

Hong Kong=Jun-hyung Lee, Young-min Lee BloomingBit Reporters gilson@bloomingbit.io