Hong Kong Legislative Council Member Responds to Justin Sun and FDT Dispute: Regulatory Framework Should Be Reviewed Promptly

BlockBeats News, April 3rd. According to the Hong Kong media Sing Tao Daily, there is a $500 million trust fraud case, and mainland cryptocurrency tycoon Justin Sun believes it is a problem with the Hong Kong system. Wu Jiezhuang, Chairman of the Legislative Council's Web3 and Virtual Asset Development Subcommittee, stated that Hong Kong is actively attracting foreign investment, including mainland funds. However, many foreign friends have a very superficial understanding of the Hong Kong system, and there are even many misunderstandings. He believes this is an issue that needs to be addressed. It is expected that the incident will have international repercussions, and the authorities must quickly re-examine different regulatory systems to respond to society.

Wu Jiezhuang stated that due to the lack of a custody regulatory system, Web3 companies will use trust companies as a basis to help third parties custody assets. If done properly, there is no issue. However, there are malicious individuals who exploit this gap to engage in unlawful activities. He is concerned that this may affect confidence in Hong Kong as a financial center. He suggested that the authorities should engage in more public education and review whether there is room for optimization.