Hong Kong Reinforces ‘Same Risk, Same Regulation’ Principle for Digital Assets at WEF
A Clear Stance from Davos
During a pivotal closed-door workshop held at the prestigious World Economic Forum (WEF) in Davos, Switzerland, Hong Kong’s Finance Secretary, Paul Chan, articulated the city’s unwavering commitment to a robust regulatory framework for digital assets. His statements underscored a proactive approach to integrating virtual assets into the global financial ecosystem while safeguarding stability and investor confidence.
The Core Principle: ‘Same Risk, Same Regulation’
Hong Kong’s regulatory philosophy for the burgeoning cryptocurrency sector is firmly rooted in the principle of ‘same risk, same regulation’. This foundational approach advocates for applying existing regulatory standards and oversight mechanisms, typically reserved for traditional financial instruments, to digital assets that present comparable risks.
- Level Playing Field: Ensures that digital asset activities, such as trading, lending, and investment, are subject to the same scrutiny as their conventional counterparts.
- Mitigating Arbitrage: Prevents regulatory arbitrage, where entities might exploit gaps between traditional and digital asset regulations, potentially undermining market integrity.
- Investor Protection: Aims to provide a consistent level of investor protection, market integrity, and anti-money laundering (AML) safeguards across all financial products.
Balancing Innovation with Essential Guardrails
Secretary Chan emphasized that while Hong Kong remains a staunch advocate for innovation and the immense potential of blockchain technology and
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