Hong Kong's Cryptocurrency License Revocations Shake Market Confidence

According to Odaily, Hong Kong legislator Qiu Dageng expressed concerns over the recent revocation of licenses for several global cryptocurrency exchanges. In a commentary published in the Hong Kong Economic Daily last Saturday, Qiu stated that these actions have shaken the confidence of market participants in Hong Kong's promotion of Web3 development. Qiu Dageng pointed out that the revocation of license applications reflects the major flaws in the current system. He explained that various policies related to the development of Hong Kong's virtual asset market, such as VATP, stablecoin issuance, and over-the-counter trading of virtual assets, are formulated by different departments, lacking a comprehensive strategic consideration for industry development. The legislator added that some license applicants have told him that the authorities lack a forward-looking vision for the development of next-generation financial technology. They are promoting Web3 with traditional financial thinking, which lacks flexibility. The Hong Kong Securities and Futures Commission requires operators to meet standards similar to traditional financial institutions. However, when applied to Web3 finance, these standards seem to be 'too strict'.