Scores of listed financial companies in Hong Kong have pledged self-discipline after forming a virtual asset industry body, seeking to support the creation of a transparent regulatory framework and contribute to the city’s goal of becoming a global virtual assets hub.
The Hong Kong Virtual Assets Listed Companies Association (HKVALA), which was inaugurated on Wednesday, counts nearly 40 firms listed in the special administrative region among its founding members.
They include digital asset trading platform operators such as OSL Group and HKE Holdings, as well as traditional financial institutions like China Renaissance Holdings, which earlier announced a $100 million investment in Binance Coin. The members also span two Chinese mainland-listed enterprises and nine listed in the United States.
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Speaking at the inauguration ceremony, HKVALA Chairman Zhang Huachen said the association aims to provide a platform for efficient communication and broader cooperation, pool the strengths of different industry participants, and foster compliance and healthy development in Hong Kong’s virtual assets sector.
Zhang, who is also co-chief executive officer of investment holding company GoFintech Quantum Innovation, added that the HKVALA will focus on talent cultivation, working with universities and research institutes to organize training seminars and other activities to nurture new professionals and boost the industry’s growth.
The fledgling association also issued a development declaration, urging industry self-discipline and calling on peers to avoid excessive hype and speculation in order to bolster a sustainable digital finance ecosystem.
Johnny Ng Kit-chong, who heads a Legislative Council subcommittee on virtual assets development, encouraged the HKVALA to forge a global foothold and promote Hong Kong’s advantages, particularly its clear and reliable legal and regulatory frameworks.
Noting that some investors have fallen victim to scams due to limited understanding of the emerging industry, Ng also stressed the importance of investor education, and called on the association for support.
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In June, the SAR government issued Policy Statement 2.0 on the Development of Digital Assets to reaffirm its commitment to establishing Hong Kong as a global digital asset hub. The statement introduces a “LEAP” framework, which stands for legal and regulatory streamlining; expanding the suite of tokenized products; advancing use cases and cross-sector collaboration; as well as people and partnership development.
Highlighting the significance of the “LEAP” framework, Under Secretary for Financial Services and the Treasury Joseph Chan Ho-lim said the SAR government has adapted an open and proactive stance toward the development of Web3 and tokenization. For instance, the government launched its first official non-fungible token, and issued batches of tokenized green bonds in recent years, he added.
To further consolidate the city’s competitiveness, Chan pledged that Hong Kong will continue to act as a pioneer, driving the integration of digital assets with traditional finance, and advancing the application of technologies such as blockchain and artificial intelligence.
Contact the writer at gabylin@chinadailyhk.com
