Hong Kong's financial regulators, led by Treasury chief Christopher Hui, are adopting a responsive approach to cryptocurrency regulations, aiming to balance innovation with investor protection.

Recent statements highlight a commitment to continuously monitor and adjust rules to align with market developments.

This comes amid withdrawals of licensing applications by global exchanges and regulatory warnings against unauthorised virtual asset activities.

Hong Kong aims to enhance its position in fintech, particularly in decentralised finance (DeFi) and the Metaverse, despite challenges in fully tapping into these burgeoning sectors.