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 skepticism from central bankers and economists about the value of cryptocurrencies, Leung pointed out that Bitcoin has weathered numerous boom-and-bust cycles, demonstrating its ability to withstand market fluctuations. She clarified that her support is more for Bitcoin’s underlying technology, distributed ledger (DLT), than the cryptocurrency itself.
Leung 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 utilized for real-world assets. She highlighted the potential benefits of tokenization, such as enhancing financial inclusion, fractionalization, custody, and ownership on the blockchain.
However, Leung acknowledged that realizing these benefits in the financial sector would require significant advancements, particularly in scaling up and maturing blockchain networks. She emphasized the importance of interoperability across distributed networks among financial institutions and across borders.
Hong Kong’s favorable stance towards cryptocurrencies is evident, with the region positioning itself as a crypto-friendly hub by approving spot Bitcoin and Ethereum exchange-traded funds (ETFs). Despite this progress, authorities are cracking down on unlicensed crypto exchanges, threatening to shut down those operating without a license.
In an effort to regulate the industry, the Hong Kong SFC plans to conduct onsite inspections for crypto license applicants, ensuring compliance with regulations and promoting a safe and secure environment for digital asset trading.