EY boardroom briefing for INEDs explores Hong Kong’s virtual asset roadmap

Ernst & Young, Hong Kong (EY) yesterday hosted the “Boardroom briefing for INEDs – Navigating virtual asset landscape: market dynamics and regulatory evolution for sustainable growth”, bringing together close to 200 guests, including independent non-executive directors (INEDs), board members and senior management of listed companies, regulators and industry leaders. The seminar examined the shifting virtual asset landscape and how boards can steer sustainable growth amid sector transformation.

Jack Chan, EY China Chairman and Greater China Regional Managing Partner, says: “Hong Kong sits at the intersection of global financial innovation and regulatory leadership, creating unique challenges and opportunities for independent non-executive directors. As virtual assets mature, they have moved from the periphery to the boardroom, with direct implications for strategy, governance, risk management and long-term value creation. At EY, we see a clear shift in boardroom conversations: the focus is no longer on whether virtual assets matter, but on how and under what governance conditions organizations should engage with them. This places INEDs at the center of critical decision-making, balancing innovation with prudence and opportunity with accountability.”

Strengthening Hong Kong’s virtual asset governance and regulatory clarity

With multiple frameworks now shaping the virtual assets landscape, from rules for trading platforms, intermediaries and stablecoin arrangements, the question of “who regulates what” remains top of mind for market participants. In the fireside chat on “Virtual asset regulatory landscape and compliance”, regulator representatives outlined a clear roadmap of Hong Kong’s supervisory responsibilities and the rationale behind different regulatory approaches. They also highlighted how policymaking, supervision and enforcement efforts are intertwined to uphold market integrity and support responsible industry growth.

As virtual asset adoption accelerates, regulators emphasized directors’ responsibilities when listed issuers or financial institutions expand into virtual asset-related activities, underscoring the need for INEDs to enhance oversight and deepen relevant competencies. A robust regulatory framework remains vital in reinforcing Hong Kong’s commitment to establish itself as an innovative global hub for virtual assets.

Navigating corporate adoption and market evolution

In the panel discussion “In the age of virtual assets: opportunities and challenges”, speakers discussed how virtual assets are gaining traction across corporates. They highlighted emerging use cases such as tokenization and real world asset applications, and compared Hong Kong’s development with other global hubs while identifying enablers needed for scale – stronger connectivity with traditional finance, deeper liquidity and clarity around product listings.

The panel explored how organizations should begin their virtual asset journey, including the need to educate senior leadership, the governance and legal risks evaluated at early stages, and the potential benefits and investment considerations. Buy side perspectives stressed the importance of liquidity, product diversity and regulatory maturity, alongside lessons learnt from past market volatility. The session closed with practical advice for INEDs, emphasizing informed oversight, understanding virtual asset value propositions and adopting strong governance frameworks as organizations consider opportunities in this evolving sector.

Anthony Leung, EY Hong Kong and Macau Assurance Leader and Greater China Deputy Assurance Leader, says: “As virtual assets move from experimentation to real corporate adoption, strong governance, transparent risk management, and informed board oversight have become essential. The opportunities are significant, but sustainable adoption demands clarity, discipline and sound controls. As organizations explore this space, boards must stay educated, understand the risks and ensure safeguards are embedded from the outset. When companies pair innovation with robust assurance and transparent oversight, they not only protect stakeholders – they also build the trust needed to unlock long term value in a fast evolving market.”

Raymond Yeung, ANZ Chief Economist Greater China, adds: “In the evolving technological and geopolitical landscape, global capital flows are increasingly focused on key markets like China and North Asia. China's strong demand for strategic resources and precious metals highlights the dominance of structural factors over cyclical ones, with the undervalued RMB being pivotal for future economic trends.”

Against this economic backdrop, the discussion turned to how organizations can translate these market shifts into effective governance and strategic readiness, particularly as virtual assets take on a more significant role in Hong Kong’s financial landscape.

Jasmine Lee, EY Hong Kong and Macau Managing Partner, says: “As virtual assets gain prominence across global markets, the intersection of digital innovation, cross border collaboration and ESG priorities is creating new opportunities for Hong Kong companies. Boards must adopt agile governance frameworks that strengthen resilience while enabling organizations to capture the next wave of digital driven growth.”

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