The president of the Hong Kong Securities and Futures Association called on Hong Kong's virtual asset market to relax restrictions on mainland residents' participation

Chen Zhihua, president of the Hong Kong Securities and Futures Professionals Association, proposed six key points for Hong Kong to enhance the virtual asset field, including: 1. Relaxing restrictions on participation of mainland residents: Allowing more mainland residents to participate in Hong Kong's virtual asset market will introduce a large amount of capital and technology, enhance the vitality and liquidity of the market, and expand Hong Kong's influence as a financial center. 2. Improve the regulatory system The regulatory framework needs to be evaluated and adjusted to better adapt to the unique operating model and rapidly changing characteristics of the virtual asset industry. This may include introducing more flexible and innovative regulatory approaches, reducing unnecessary compliance burdens, while maintaining a high level of risk control. 3. Simplify the licensing process Speed ​​up the approval process for virtual asset platform licenses, provide clear timetables, requirements in line with industry practices, clearer guidance and transparent application processes, and attract more international participants. This can be achieved by introducing an electronic application system and increasing the number of competent approval personnel. 4. Establish a unified regulatory agency Consider establishing a unified virtual asset regulatory committee to coordinate the work of different regulatory agencies, ensure the consistency and effectiveness of regulatory standards, so as to reduce the compliance costs of enterprises and improve the efficiency of supervision. 5. Strengthen cooperation with the Mainland The SAR government should work closely with relevant regulatory agencies in the Mainland to explore a collaborative mechanism for virtual asset supervision and promote the interconnection of the two markets and the two-way flow of funds. 6. Introduce more professional knowledge and industry experience Introduce more professional knowledge and industry experience in the supervision process, hire industry experts to participate in supervision and approval work, ensure that the supervision process is both rigorous and efficient, and that the regulatory framework and requirements do not deviate from general industry practices. At the same time, more new products should be developed, such as real world assets (RWA). In line with the announcement in the Policy Address that gold warehouses and related trading facilities will be established, gold RWA can be developed as one of the virtual assets.