Industry insiders: Hong Kong Securities and Futures Commission's "safety first" regulatory approach to virtual asset trading platforms is valuable

According to the South China Morning Post, despite the recent withdrawal, the recent "deemed licensed" exchanges still inspire some optimism about the future of Hong Kong's virtual asset market. Hong Kong Legislative Council member Qiu Dagan recently issued a document questioning the impact of the exchange's withdrawal on the development of Hong Kong Web3, but many industry insiders believe that the Hong Kong Securities and Futures Commission's "safety first" regulatory approach to virtual asset trading platforms is valuable. According to Alessio Quaglini, co-founder and CEO of Hong Kong-based cryptocurrency custody provider Hex Trust, the withdrawal of applications by virtual asset trading platforms is natural because of the trade-off between the size of Hong Kong's retail market and high regulatory costs, as well as the impact on its global business. If the goal is to position Hong Kong as a global hub, then the strict regulatory framework strategy is reasonable, but the implementation should be improved. Jonathan Crompton, a partner at Hong Kong-based RPC law firm, said that the Hong Kong Securities Supervision Commission's core principles of regulating cryptocurrencies emphasize investor protection, requiring virtual asset market participants to meet the same standards as traditional financial marekt participants.