Hong Kong backs same risk same regulation model for crypto at WEF

Hong Kong Finance Secretary Paul Chan defended the city’s “same activity, same risk, same regulation” approach to digital assets at the World Economic Forum in Davos.

Speaking at a closed-door workshop in Switzerland, Chan said finance and technology are increasingly intertwined but require balanced regulatory oversight.

“Digital assets should serve the real economy, but we must also build strong guardrails to address risks to financial stability, market integrity and investor protection,”

Paul Chan said.

He said the framework regulates digital asset firms based on the risks of their activities rather than the technology they use.

Chan highlighted Hong Kong’s licensing regime for virtual asset trading platforms and pilot projects using tokenised deposits and digital assets.

He added that stablecoin licences are expected to be issued in the first quarter.

Hong Kong has issued three batches of tokenised green bonds worth a combined $2.1 billion since 2023, he said.

Authorities have increasingly promoted asset tokenisation as a practical use case for digital assets.

The Hong Kong Monetary Authority said its Fintech 2030 strategy will prioritise tokenisation through more than 40 planned initiatives.