Hong Kong is preparing to introduce new licensing rules for virtual-asset service providers and guidelines for banks interacting with crypto firms. The Chief Executive of the Hong Kong Monetary Authority (HKMA), Eddie Yue, has stated that companies attracted by the plan to turn Hong Kong into a hub for digital assets should expect strict regulations. The new regulations will be tight, but the plan is to allow retail investors to acquire and trade major cryptocurrencies like bitcoin and ether. The move is part of efforts by authorities in China’s special administrative region to restore Hong Kong’s credentials as a leading financial center in the aftermath of restrictions imposed in response to the Covid pandemic and political unrest in the territory.