Hong Kong authorities have shrugged off the downfall of crypto exchange FTX with the securities regulator noting that fund managers were unaffected while the financial secretary reiterate the city’s digital asset ambitions.
Exposure to FTX has not resulted in significant risks amongst fund managers in Hong Kong, according to the Securities and Futures Commission (SFC).
«SFC has made inquiries with licensed fund managers with exposure to virtual assets, and considered the exposure, if any, to FTX, [FTX token] and related entities to be immaterial,» said a spokesperson for the regulator. «The fallout of FTX could impact other tokens and other parts of the virtual assets ecology. We will continue to monitor the situation.»
Financial Secretary
Paul Chan, the city’s financial secretary, also referenced the FTX collapse without naming the exchange and reiterated Hong Kong’s crypto ambitions while illustrating a positive outlook.
«The tech bubble burst in 2000 has caused many people to be wary of technological development. However, in the environment of mobile terminals and network, technology has evolved on its own path and developed into platform and network economies,» Chan said in a blog post.
«While the bubble and volatility in the [virtual asset] market over the last few years have disturbed the investment market, financial innovation has not ceased to develop and the industry continues to evolve in technology and applications.»
Sam Bankman-Fried’s FTX was founded in Hong Kong before moving its headquarters to the Bahamas in September 2021 but the firm remains on the city’s corporate registry.
