Hong Kong Considers Digital Channel For Mainland Investors In Virtual Assets

According to Foresight News, Hong Kong legislator and chairman of the Web3 and Virtual Asset Development Task Force, Ng Kit Chuang, has proposed the idea of a 'Digital Channel' to facilitate mainland investors in trading Hong Kong-approved digital assets. This initiative aims to enhance the connectivity between mainland China and Hong Kong, fostering financial innovation and nurturing new productivity. While cryptocurrency trading is prohibited in mainland China, it remains legal in Hong Kong under the 'one country, two systems' framework. Similarly, gambling is banned in mainland China, yet mainland residents can legally gamble in Macau. Ng believes that the future of financial connectivity between the mainland and Hong Kong, particularly regarding mainland residents investing in Hong Kong's virtual assets, will largely depend on the evolving international landscape. He anticipates that mainland China will adjust its policies accordingly. Currently, the United States is actively embracing digital assets, and mainland China is placing significant emphasis on developing the digital economy, viewing it as a new form of productivity. The Hong Kong Special Administrative Region government is also listening to industry voices and is open to embracing the new digital economy.