China Crypto Pioneer Warns Hong Kong May Cool on Digital Assets

A crypto entrepreneur whose business in China was upended by a regulatory crackdown considers his experience to be a cautionary tale for companies attracted by Hong Kong’s push to create a digital-asset hub.

Crypto may not stay a long-term priority for Hong Kong even though for now it’s focused on rolling out fresh rules for the sector, according to Bobby Lee, who set up China’s first Bitcoin exchange and then shuttered the mainland trading platform after a clampdown by Beijing. He later founded US-based crypto storage provider Ballet Global Inc.

Bobby Lee, CEO of Ballet Global Inc.

Photographer: Eva Marie Uzcategui/Bloomberg

Hong Kong is set to issue licenses for ...