Embrace fintech with caution: FS

September 27, 2023

Financial Secretary Paul Chan:

For the JPEX case, as far as the Government is concerned, we are of the view that blockchain technology is here to stay. Financial innovation, basically, is something that we have to embrace. But at the same time, we would like to advise members of the public that it is important to take note of the risks associated with doing transactions on non-licensed platforms.

On the other hand, the Government will continue to impose balanced regulations to put in a balanced (and) proper regulatory framework to protect investors’ interests as well as protect financial stability (and) prevent risks associated with anti-money laundering.

With this (in mind), we want to continue to encourage the responsible and sustainable development of the Web3 sector.

As to your question about this trip (to Europe), currently the geopolitical environment is still challenging. But what is important is that given this challenging political situation, we still need to proactively reach out and engage, and find the common ground.

As far as we understand, during this trip, the (European) business sector has been very forthcoming. Indeed, they agree with us (on) the special role that Hong Kong can play and (the) unique function that Hong Kong can (provide). They do recognise that the Greater Bay Area, Mainland (China) and the Asia market are the future of economic growth.

Financial Secretary Paul Chan today said that while financial innovation is to be embraced, the public should beware of the risks associated with making transactions on unlicensed platforms.

Speaking to reporters after returning from his visit to Europe, Mr Chan noted the Government was of the view that blockchain technology is here to stay.

“On the other hand, the Government will continue to impose balanced regulations to put in a balanced and proper regulatory framework to protect investors’ interests as well as protect financial stability and prevent risks associated with anti-money laundering.”

The Government also encourages the responsible and sustainable development of the Web3 sector, he added.

Having just returned from a trip to France, the UK and Germany, the finance chief pointed out that the current geopolitical situation remained challenging.

“We still need to proactively reach out and engage, and find the common ground.

“The European business sector has been very forthcoming. Indeed, they agree with us on the special role that Hong Kong can play and the unique function that Hong Kong can (provide). They do recognise that the Greater Bay Area, Mainland (China) and the Asia market are the future of economic growth.”