Hong Kong Securities and Futures Commission: The virtual asset industry faces many risks and has a large demand for insurance
The temporary head of the Intermediary Supervision Department of the Hong Kong Securities and Futures Commission, Cai Zhonghui, stated that virtual assets such as Bitcoin and Ethereum have become mainstream virtual assets that cannot be ignored. However, there have been problems such as illegal fundraising for the first time in the past in initial coin offerings (ICOs). Therefore, the Securities and Futures Commission will regulate virtual asset trading platforms and consider that the platforms have a responsibility to provide suitable virtual assets to investors. Cai Zhonghui emphasized when attending the Asian Insurance Forum that if virtual assets are involved in collective investment plans, they will be included in the regulatory network. However, transactions using tokenization technology, such as concert tickets, will not be regulated. He believes that the virtual asset industry faces many risks, such as ensuring that the asset transfer process does not lose investor information and facing digital security risks. Therefore, it creates a large demand for insurance and can become an opportunity for the insurance industry.
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