Continuing a visit to Paris, Financial Secretary Paul Chan yesterday attended the “No Money for Terror” Ministerial Conference on Counter-Terrorism Financing alongside delegations from over 80 countries and regions.
Highlighting that criminals take advantage of the anonymity and speed associated with digital assets to transfer funds across borders and evade tracking, Mr Chan said jurisdictions must implement international standards, which includes enacting regulations for digital asset platforms and issuers, so as to prevent regulatory arbitrage.
He outlined that Hong Kong, through a comprehensive legal framework, risk-based regulation and full inter-agency collaboration, has been proactive on this front, and was assessed as compliant overall in the latest round of evaluation by the Financial Action Task Force.
Mr Chan added that Hong Kong, following the principle of “same business, same risks, same regulation”, has enacted licensing regimes for digital asset platforms and stablecoin issuers, and that these include requirements on investor protections and the prevention of money laundering.
He stressed that jurisdictions should deepen cross-border and inter-agency collaboration, strengthen information exchange, and expedite the interception and freezing of illicit funds, adding that blockchain analytics can be used to enhance law enforcement capabilities and the recovery of illicit assets.
Separately, Mr Chan called on Organisation for Economic Co-operation & Development Deputy Secretary-General Fabrizia Lapecorella and briefed her on Hong Kong’s economic and financial situation.
He also met Financial Action Task Force President Elisa de Anda Madrazo, with whom he discussed strengthening international co-operation to counteract money laundering and terrorism.
Mr Chan had lunch with local banking and financial leaders and briefed them on the economic outlook and investment opportunities in China and Asia.
