Head of SFC commends Bitcoin

Julia Leung, the head of Hong Kong’s Securities and Futures Commission, believes that Bitcoin has proven its resilience as an “alternative asset” over the past 15 years, despite facing numerous cycles of “boom and bust.”
Speaking at the Greenwich Economic Forum, Leung acknowledged the skepticism surrounding the intrinsic value of cryptocurrencies among central bankers and economists. However, she highlighted Bitcoin’s ability to withstand market fluctuations and establish itself as a viable investment option.
Leung expressed her support for Bitcoin’s underlying technology, distributed ledger (DLT), rather than the cryptocurrency itself. She also commented on the growing popularity of non-fungible tokens (NFTs), noting that while digital collectibles may be a passing trend, the technology behind them has real-world applications.
The SFC chief emphasized the potential benefits of tokenization, such as increased financial inclusion, fractionalization, and secure ownership on the blockchain. She recognized the need for blockchain networks to scale and mature to fully realize these advantages, stressing the importance of interoperability among financial institutions and across borders.
Hong Kong’s favorable attitude towards cryptocurrencies is evident in its efforts to become a crypto-friendly hub, as demonstrated by the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). Despite this progress, authorities are cracking down on unlicensed crypto exchanges, with plans to shut down all unauthorized platforms in the region.
In order to strengthen regulatory oversight, the SFC plans to conduct onsite inspections for crypto license applicants, signaling a commitment to ensuring compliance and protecting investors in the rapidly evolving crypto space.