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After the FTX fiasco, Hong Kong claimed it is still optimistic about digital assets

After the FTX fiasco, Hong Kong is still enthusiastic on virtual assets in the financial sector and maintains the belief that business regulation is a requirement for market development, according to a blog post written by Hong Kong’s Financial Secretary Paul Chan.

Chan stated that Hong Kong will begin a public consultation on the protection standards for small investors and that Hong Kong continues to welcome the entry of exchange-traded funds (ETFs) that invest in virtual assets.

Chan also emphasized the potential advantages that non-fungible tokens (NFTs), distributed ledgers, and blockchain technology could have for the banking sector.

“The bursting of the Internet bubble in 2000 made many people wary of technological development, but the technology still follows its path, developing the platform economy and a network economy in a mobile terminal and the network environment,” he said.

Regulations will “create the prerequisites for an orderly and robust market.”

According to Chan, the industry has come to the conclusion that protecting investors, regulating corporate governance, and disclosing financial and operational information would all be advantageous to the crypto business in the long term.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.