CZ Challenges Hong Kong’s Crypto Limits to Boost Global Ambitions

Binance founder Changpeng Zhao, known as CZ, has urged Hong Kong regulators to broaden the range of cryptocurrencies available for trading in the city. Currently, Hong Kong limits retail trading to only four tokens—Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK)—a policy he argues restricts the city’s potential to become a global crypto hub. In an interview with the South China Morning Post, CZ emphasized that this narrow selection is insufficient to attract a diverse range of investors and entrepreneurs [1].

The restriction on token listings stems from the Securities and Futures Commission (SFC) rules introduced in August 2023, which require tokens to be listed in at least two major indices, one of which must be from traditional finance [2]. This approach has limited the number of available assets and slowed the pace of innovation in the local crypto market. In contrast, jurisdictions like Japan and the United States allow exchanges greater autonomy in selecting assets for listing, a flexibility CZ suggests Hong Kong could adopt to remain competitive.

CZ praised Hong Kong’s government for its proactive stance toward Web3 technologies but noted that the city’s regulatory environment must evolve faster to match global standards. He cited Japan’s regulatory model as a viable alternative, where licensed exchanges can list tokens without each needing inclusion in a major index. This flexibility, he argued, fosters innovation and accelerates the adoption of digital assets [1].

Beyond token listings, Hong Kong is also implementing broader regulatory changes in the virtual asset sector. Recent policy developments include stricter custody requirements for trading platforms, stablecoin licensing regimes, and consultations on over-the-counter trading and custodian structures. CZ acknowledged these efforts as part of a broader strategy to build a secure and inclusive virtual asset ecosystem, particularly emphasizing the importance of tokenization and stablecoin evolution [1].

Looking ahead, Hong Kong plans to roll out a more detailed digital asset policy by the end of 2025. This will build on the initial framework introduced in October 2022 and aims to support the city’s ambitions to become a leading crypto hub in Asia. CZ described himself as a “backbench coach,” advising entrepreneurs while distancing from his role as Binance CEO following a settlement with U.S. authorities in late 2023 [2].

The debate over Hong Kong’s crypto policy comes as global regulators adopt divergent approaches to digital assets. While some jurisdictions prioritize speed and flexibility, others emphasize risk mitigation and consumer protection. The outcome of Hong Kong’s regulatory evolution will likely shape its ability to attract institutional and retail investors in the coming years.

Source:

[1] Binance's CZ Urges Hong Kong to Broaden Crypto Listings! (https://coinfomania.com/binances-cz-urges-hong-kong-to-broaden-crypto-listings/)

[2] Hong Kong Needs Broader Crypto Offerings To Rival US, ... (https://cryptonews.com/news/hong-kong-needs-broader-crypto-offerings-rival-us-uae-changpeng-zhao/)

[3] Hong Kong's Crypto Hub Strategy Puts Trump Assets ... (https://icobench.com/news/hong-kongs-crypto-hub-strategy-puts-trump-assets-within-beijings-reach/)