Hong Kong is set to regulate its over-the-counter virtual asset trading, responding to a surge in cryptocurrency investments from mainland Chinese investors seeking refuge from their sluggish stock market. The announcement by Joseph Chan Ho-lim, Under Secretary for Financial Services and the Treasury, aims to mitigate risks while providing a transparent regulatory environment for the booming industry. This regulatory move coincides with Bitcoin’s value hovering around USD40,000, amidst market sensitivity to Grayscale’s Bitcoin fund’s selling pressure. Mainland investors, concerned about China’s economic downturn, are utilising their annual USD50,000 foreign currency quota to funnel funds into Hong Kong’s crypto accounts. Unlike mainland China, where crypto trading is banned, Hong Kong permits it on regulated platforms, positioning the city as a potential cryptocurrency hub in Asia.