PANews reported on April 3 that according to Sing Tao Daily, in response to a trust institution being involved in a $500 million fraud case and raising doubts about the Hong Kong system, Wu Jiezhuang, chairman of the Hong Kong Legislative Council's Web3 and Virtual Asset Development Subcommittee, said that Hong Kong is actively attracting foreign capital, including from the mainland, but many outsiders have limited understanding of Hong Kong's system and even have misunderstandings. This is a problem that needs to be faced.
Wu Jiezhuang pointed out that the incident is expected to attract international attention, and the relevant regulatory mechanisms must be reviewed as soon as possible to respond to social concerns. At present, Hong Kong has not yet established a special asset custody regulatory system. Some Web3 companies will use trust companies as a means of third-party custody of assets. If they follow the formal procedures, there will be no problem. However, if the loopholes in the system are exploited by criminals, it may affect the outside world's confidence in Hong Kong's financial center. He suggested that publicity and education should be strengthened, and whether there is room for optimization of the system should be examined to prevent similar incidents from happening again.
