Hong Kong legislator: Overly strict cryptocurrency licensing rules have shaken market participants' confidence in Hong Kong's promotion of Web3 development

In an opinion piece published in the Hong Kong Economic Times on Saturday, Duncan Chiu, a member of the Hong Kong Legislative Council, said that overly strict cryptocurrency licensing rules have shaken market participants' confidence in the development of Web3 in Hong Kong.
Chiu said the withdrawal of the licence application reflected the main drawbacks of the current licensing system. "Several policies related to the development of the virtual asset market in Hong Kong, such as the VAT scheme, stablecoin issuance and virtual assets over the counter, were designed by different departments and lacked a comprehensive strategic consideration for the development of the industry," he explained. The Securities Supervision Commission requires operators to meet standards similar to those of traditional Financial Institution Groups, but these standards are "too strict" when applied to Web3 Finance.