Transcript of remarks by SFST at media session
**********************************************
Reporter: Secretary, the upcoming Global Financial Leaders' Investment Summit is the first international event since the pandemic three years ago. What do you think can be achieved during the Summit? And what about the legislation on virtual assets and what is the next step?
Secretary for Financial Services and the Treasury: In fact this week starts with a series of events, relating to Hong Kong's role as an international financial centre. First of all, of course, is this event, the Fintech Week 2022. The other event highlighted is the Global Financial Leaders' Investment Summit and at the same time the related event is the Rugby Sevens.
And after all, if you look back in terms of what we want to achieve, I think the key message is clear that we're open for business. At the same time, we welcome corporations, talents, investments from different parts of the world. This is exactly the reason that we have a host of events that is being planned and is taking place here to showcase that. That is number one.
And number two, in terms of what is highlighted in our latest policy statement, or in particular our legislation, the whole objective is basically that we try to provide a sustainable and responsible regulation to regulate the virtual assets service providers, i.e. the virtual assets exchanges.
If you look back, in terms of the technological elements of virtual assets, for example, the blockchain and the distributed ledger technology, I think all of these are going to stay. What we need to do as the Government is to harness these positive elements in this technology and to apply them in a responsible, practical and useful manner to the economy.
That's why, with the principle of having similar regulation for similar risks, we will put together the legislation (proposed legislative amendment) to be passed by LegCo (Legislative Council) and at the same time, after that, our regulator the SFC (Securities and Futures Commission) will consult the market in terms of how the retail sector can participate under this new legislative regime. And more than that, if you look back in terms of the exchange-traded products as now growing, many of them have virtual assets as the underlying assets. And that's why our regulator will also soon issue a circular highlighting how ETFs (exchange-traded funds) can be allowed with virtual assets as the underlying (assets).
(Please also refer to the Chinese portion of the transcript.)
Ends/Monday, October 31, 2022
Issued at HKT 15:25
Issued at HKT 15:25
NNNN