First Digital CEO: Hong Kong should accelerate cryptocurrency regulation

ChainCatcher news, according to Cointelegraph, the Hong Kong-based stablecoin issuer First Digital Trust stated that Hong Kong should accelerate its regulation in the digital asset space to avoid falling behind in the rapidly evolving industry. Although Hong Kong is committed to becoming a global cryptocurrency hub, currently, there are only two virtual asset trading platforms, Hash Blockchain and OSL Digital Securities, that hold full licenses, while many other exchanges are still waiting for comprehensive operating licenses.

First Digital CEO Vincent Chok stated in an interview that it is understandable for Hong Kong to adopt a more conservative and slow approach to trading regulation, as it prioritizes investor protection. However, he pointed out that he hopes to see regulatory acceleration to ensure that the region does not lag behind the pace of industry development. First Digital Trust believes that Hong Kong is not yet ready to regulate dollar-backed stablecoins, while Dubai has taken a more global approach. Chok expressed anticipation for Hong Kong to introduce regulations for dollar-backed stablecoins in the near future.

Additionally, Chok does not believe that banks will be eager to provide digital asset custody services, as it exceeds their risk tolerance. Many companies have already established trust structures to offer cryptocurrency custody services.