Hong Kong legislators respond to the US$500 million fraud case involving a trust institution: the outside world may have misunderstandings about the Hong Kong system

Odaily Planet Daily News In response to a trust institution being involved in a $500 million fraud case and raising questions 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 investment, including from the mainland, but many outsiders have limited understanding of Hong Kong's system and even misunderstandings, which 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 mechanism 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 process, there is no problem, but if the system is used 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 the system has room for optimization should be reviewed to prevent similar incidents from happening again.