Decentralized finance (DeFi) projects may be subject to licencing and regulation, according to a Hong Kong regulator on Wednesday. Keith Choy, interim head of intermediaries at Hong Kong’s Securities and Futures Commission (SFC), stated that DeFi activity will be subject to the same regulatory requirements as traditional financial activity as long as it falls within the scope of the Securities and Futures Ordinance (SFO). Choy made the remarks during a speech at the Web3 Festival in Hong Kong, just as the United States and France published reports on DeFi regulation. The SFC had previously identified DeFi as an area in need of regulation but had not stated its position.