Hong Kong defends 'same risk, same regulation' approach for crypto at WEF

Hong Kong's Finance Secretary Paul Chan emphasized the need for regulatory frameworks alongside innovation for digital assets during a closed-door workshop in Davos. He stated that the same risks associated with digital assets necessitate the implementation of equivalent regulations. This approach seeks to encourage industry development while ensuring investor protection and the stability of financial markets. Hong Kong's intention to enhance regulations around digital assets may serve as a reference for other financial centers. The impact of regulatory strictness on the industry's growth remains a point of interest for investors and market participants. Chan concluded that while promoting innovation in digital assets, Hong Kong must also institute appropriate regulations addressing the associated risks, which could lead to a more reliable market structure and enhanced investor safety.