Hong Kong Legislative Council Member Qiu Dagen: The authorities’ standards for issuing virtual asset licenses are “too strict”

In a commentary published in the Hong Kong Economic Journal on Saturday, Hong Kong Legislative Council member Darwin Chiu wrote that the recent withdrawal of licenses from several global cryptocurrency exchanges "has shaken market participants' confidence in Hong Kong's promotion of Web3 development." Darwin Chiu said the revocation of license applications reflects the main flaws of the current system. He explained: "First, multiple policies related to the development of Hong Kong's virtual asset market (such as VATP, stablecoin issuance, and virtual asset over-the-counter trading) are formulated by different departments, lacking comprehensive strategic considerations for the development of the industry." The lawmaker added that some license applicants told him that the authorities lack a forward-looking vision for developing the next generation of fintech and lack flexibility in promoting Web3 with traditional financial thinking. The Hong Kong Securities and Futures Commission requires operators to meet similar standards as traditional financial institutions, but these standards seem "too strict" when applied to Web3 finance. (The Block)