Chen Zhihua, president of the Hong Kong Securities and Futures Professionals Association, has highlighted the challenges and prospects of Hong Kong's virtual asset platform licensing in a recent article. He emphasized that mainland laws prohibit foreign institutions from providing virtual currency trading and services to the mainland, posing a significant challenge for Hong Kong's licensing requirements. To address this issue, Chen Zhihua suggests a complete separation between the Hong Kong entity and the parent company.

To overcome the challenges of multiple supervision, Chen Zhihua proposes the establishment of a unified virtual asset regulatory committee. This committee would coordinate regulatory work, ensure consistency and effectiveness of regulatory standards, and maintain Hong Kong's competitiveness in the global virtual asset market. He suggests four directions for improvement: enhancing the regulatory system, seeking cooperation with mainland departments, strengthening cross-departmental collaboration, and simplifying and accelerating the licensing process.

The establishment of a unified regulatory committee would provide a clear and transparent framework for virtual asset regulation, enabling Hong Kong to remain competitive in the global market. By improving the regulatory system and enhancing collaboration with mainland departments, Hong Kong can ensure the consistency and effectiveness of regulatory standards. Simplifying and accelerating the licensing process would also provide transparent expectations for applicants, fostering a more favorable business environment.

Chen Zhihua's suggestions offer valuable insights into the challenges and opportunities facing Hong Kong's virtual asset platform licensing. By addressing these challenges and implementing the proposed directions, Hong Kong can establish a robust and effective regulatory framework, maintaining its position as a leading financial center in the global virtual asset market.

In conclusion, Hong Kong's virtual asset platform licensing faces significant challenges, but with the establishment of a unified regulatory committee and improvements in the regulatory system, collaboration, and licensing process, Hong Kong can overcome these challenges and remain a competitive player in the global virtual asset market.