Hong Kong Seeks to Revive Crypto Sector Wrecked by FTX Debacle

The virtual-asset industry remains in a deep downturn after a bubble in token prices deflated last year and investors fled.

(Bloomberg) — Hong Kong is sticking with a plan to become Asia’s digital-asset capital despite the industry’s tarnished reputation, a stance drawing tentative interest from bruised cryptocurrency businesses looking for paths to recovery.

The city says it will learn the lessons of a $2 trillion crypto market rout and a spate of global bankruptcies like the collapse of the FTX exchange to create a fresh regulatory framework that can protect investors and encourage growth.