- Hong Kong’s Financial Secretary emphasized the requirement for “steady and cautious” growth.
- Chan also emphasized the need for safety and efficient risk management.
The Financial Secretary of Hong Kong has advised for any greater focus on transparency and sufficient supervision when confronted with virtual assets, just days after Binance Chief executive officer Changpeng “CZ” Zhao cautioned from the creation of more regulatory scrutiny within the wake from the FTX crash.
Paul Chan, Hong Kong’s Financial Secretary, has emphasized the requirement for “steady and cautious” development in the virtual asset sector. Together with Chan’s update would be a banner that elaborated Chans words.
Worth of Safety and efficient Risk Management
Captured in October, the Hong Kong government announced an insurance policy known as the insurance policy Declaration on the introduction of Virtual Assets in Hong Kong. Which established a regulatory framework and risk-based regulatory direction for that local virtual asset industry. There have been also numerous pilot programmes recommended through the government. To judge and enhance the technology behind virtual assets.
Colin Wu (@wublockchain), a reporter from China, along with a crypto analyst claims that Chan’s statement may be seen as open invitation to crypto companies everywhere. Contrary, Chan appeared unfazed by FTX’s demise. Rather, he emphasized the need for safety and efficient risk management.
Additionally, he recommended that crypto companies have separate accounts where customers’ money might be stored safe. Combined with the other concerns listed by Wu. Chan also recommended that firms coping with cryptocurrencies save enough money to pay for their running costs for any year.
Lastly, Chan emphasized that openness running a business practices and sufficient regulation are essential for that crypto economy to get stable and sustainable. The FTX saga leaves the crypto sector in utter shock.