Hong Kong Securities and Futures Commission Choi Chung-fai: The virtual asset industry faces many risks and has a large demand for insurance

Cai Zhonghui, interim director of the Intermediary Department of the Hong Kong Securities and Futures Commission, said that virtual currencies such as Bitcoin and Ethereum have become mainstream virtual assets that cannot be ignored. However, problems such as illegal fund-raising in initial coin offerings (ICOs) have occurred in the past. Therefore, the Securities and Futures Commission will Asset trading platforms are included in the supervision, and it is believed that platforms have the responsibility to provide investors with suitable virtual assets. When attending the Asian Insurance Forum, Cai Zhonghui emphasized that if virtual assets involve collective investment plans, they will be included in the regulatory network, but transactions conducted with tokenization technology, such as concert tickets and other products, will not be subject to supervision. He believes that the virtual asset industry faces many risks, such as ensuring that investor information will not be lost during the asset transfer process, and also facing risks such as digital security. This has created a large demand for insurance, which he believes can become an opportunity for the insurance industry. (RTHK website)