Hong Kong Legislative Council Pushes for Virtual Asset Expansion

Hong Kong Legislative Council Pushes for Virtual Asset Expansion

Hong Kong is strengthening its financial policies to solidify its position as an international financial center, especially in the virtual asset sector, including cryptocurrencies. Recently, Legislative Council member Li Weihong, representing the Financial Services sector, gathered opinions from industry experts and submitted a series of key proposals to Financial Secretary Paul Chan. These proposals focus on expanding the virtual asset derivatives market, improving competitiveness, and attracting global investment.
According to Li Weihong, accelerating the licensing process and expanding the range of virtual asset derivative products are essential for Hong Kong to maintain its leading position in finance. He proposed allowing 23-hour daily trading of virtual asset futures contracts on the Hong Kong Futures Exchange, enabling investors to respond more flexibly to global market fluctuations.

Additionally, he emphasized the need for more futures products to ensure continuous trading, even on public holidays. This would help maintain market liquidity and attract major financial institutions to the Hong Kong market.

Positioning Hong Kong as a Global Risk Management Hub

A key goal of the Legislative Council's virtual asset expansion proposals is to establish Hong Kong as a leading financial risk management center. As the virtual asset market continues to grow, hedging tools such as futures and options play a crucial role in helping investors protect their assets and optimize returns.

If these expansion policies are implemented, Hong Kong could become a prime destination for investment funds and financial institutions seeking access to advanced derivative trading tools.

Beyond the virtual asset sector, Li Weihong also highlighted Hong Kong's strategic role in precious metals trading. He proposed that the government accelerate the development of an international gold trading hub and actively join RCEP. This would allow Hong Kong to export gold and precious metals to member countries with a 0% tariff, increasing its competitiveness in international trade.

Joining RCEP would not only strengthen Hong Kong's position in the global supply chain but also create new cooperation opportunities with emerging markets in the Asia-Pacific region.

Towards a More Open Financial Future

Li Weihong's proposals align with Hong Kong's long-term strategy to become a global financial hub. As virtual asset markets continue to evolve, policymakers and financial regulators will closely monitor the impact of these reforms on Hong Kong's economy.

If the Legislative Council's virtual asset expansion efforts are successfully implemented, Hong Kong could solidify its position as a leading virtual asset and precious metals trading hub, attracting global investment and fostering a more dynamic and modern financial environment.