"Crypto and DeFi Won't Disappear," said HKMA's CEO.

Eddie Yue, the chief executive officer of the Hong Kong Monetary Authority, stated during a G20 conference that cryptocurrencies and decentralized financial systems will continue to be key factors.

Eddie Yue, the Chief Executive Officer of the Hong Kong Monetary Authority (HKMA), believes that cryptocurrencies and decentralized finance (DeFi) will continue to play an essential role in the financial system despite the recent volatility that has been seen in the industry.

According to FinBold, when speaking during a meeting of financial authorities from the G20, Yue asked for stronger regulation of the cryptocurrency industry to prevent another crash similar to the one that occurred with the algorithmic stablecoin terraUSD (UST) and its companion token, LUNA.

"Despite the [UST-LUNA] event, I think crypto and DeFi will not disappear – though they might be pushed back," Yue added. "This is because the technology and the business innovation that are behind these advances are likely to be vital for our future financial system."

The Hong Kong Monetary Authority (HKMA) issued a statement in January indicating that it would continue to cautiously explore its relationship with crypto assets by "striking the right balance between maintaining a safe and efficient financial system in Hong Kong and supporting financial innovation." (Striking the right balance between maintaining a safe and efficient financial system in Hong Kong and supporting financial innovation)

In the latter part of the year, the Hong Kong Monetary Authority (HKMA) issued a discussion paper in which it expressed concern that the increasing use of popular stablecoins could be detrimental to Hong Kong's local currency.