Hong Kong legislator Johnny Ng Kit-chong, in an interview The Paper, proposed examining the idea of linking licensed digital-asset platforms to exchanges in Shanghai.
Currently, this is implemented for traditional assets under the Shanghai-Hong Kong Stock Connect programme — qualified Chinese investors have access to stocks on the Hong Kong Exchange, and vice versa.
The legislator expressed hope that the option would be put up for discussion.
Ng Ki-chong cited provincial initiatives to develop metaverses and noted the potential to expand the exchange of talent between the Special Administrative Region and the rest of China.
Earlier Ng Ki-chong invited Coinbase and other digital-asset platforms to Hong Kong.
In January 2023, the Financial Secretary of the Special Administrative Region Paul Chan said of the readiness of the jurisdiction to welcome cryptocurrency companies from around the world. The official noted that authorities had recently completed work on a licensing regime for the industry.
In April the High Court of Hong Kong recognised digital assets as property. In the same month local authorities urged banks to service regulated crypto platforms.
Cryptocurrency exchanges Huobi and OKX submitted applications for a virtual asset service provider license from SFC.
Circle CEO Jeremy Allaire said that ‘I do not harbour any illusions’ about the emergence of a crypto market in China, but is optimistic about Hong Kong.