Hong Kong Advances Cryptocurrency Regulation Amid Rising Fraud Cases

According to Odaily, Hong Kong Legislative Council member Ng Kit Chuang recently discussed the government's submission of the Stablecoin Ordinance Bill for its first and second readings. This bill aims to establish a regulatory framework for fiat-backed stablecoin issuers. Ng expressed optimism about the integration of the virtual and real economies through cryptocurrencies, highlighting the launch of the city's first Bitcoin and Ethereum spot ETFs this year. He hopes the government will continue to refine the legal framework to facilitate the growth of the cryptocurrency industry while managing risks. Ng believes that a well-developed industry is crucial for reinforcing Hong Kong's status as an international financial and innovation center. The Hong Kong police reported over 3,400 cryptocurrency-related cases last year, with losses exceeding HKD 4.3 billion. In the first ten months of this year, there have been more than 2,100 cases, resulting in losses of over HKD 3.1 billion. The largest single loss in these cases was approximately HKD 1.6 billion. Ng emphasized the importance of not only enhancing regulation and public education but also increasing public awareness of cryptocurrency investment risks. He advised citizens to avoid being lured by small gains, to choose licensed trading platforms, and to invest within their means.