Hong Kong’s ambition to become a global virtual-asset hub faces new challenges due to recent US policies.

Recently, President Donald Trump signed an executive order to promote the US digital asset sector, which includes forming of a working group on cryptocurrency regulations.

This shift could reduce Hong Kong’s appeal for international crypto businesses.

Stephan Lutz, CEO of cryptocurrency exchange BitMEX, noted that this may lead to talent and firms moving away from Hong Kong.

US changes may also complicate Hong Kong’s plans, such as crypto exchange licensing, a draft bill on stablecoins, regulations for over-the-counter trading and crypto custodian services.