Head of Securities and Futures Commission commends Bitcoin
Julia Leung, the head of Hong Kong’s Securities and Futures Commission, believes that Bitcoin has proven itself as a resilient “alternative asset” over the past 15 years. Despite skepticism from central bankers and economists about the value of cryptocurrencies, Leung highlighted Bitcoin’s ability to survive various market cycles, demonstrating its enduring appeal.
Speaking at the Greenwich Economic Forum, Leung expressed her support for Bitcoin’s underlying technology, distributed ledger (DLT), more so than the cryptocurrency itself. She also discussed the growing interest in non-fungible tokens (NFTs), noting that while digital collectibles may be a passing trend, the technology behind them is increasingly being used for real-world assets. Leung emphasized the potential of tokenization to enhance financial inclusion, fractionalization, custody, and ownership through blockchain technology.
However, Leung acknowledged that realizing these benefits would require significant advancements in blockchain networks and interoperability across financial institutions and borders. Despite this, Hong Kong has shown a positive attitude towards cryptocurrencies, positioning itself as a crypto-friendly hub with the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). Nevertheless, authorities are cracking down on unlicensed crypto exchanges in the region, threatening to shut them down to ensure regulatory compliance.
In an effort to regulate the crypto industry, the Hong Kong SFC is conducting on-site inspections for crypto license applicants, signaling a commitment to maintaining a safe and transparent environment for digital asset trading in the region.
