Head of the Securities and Futures Commission commends Bitcoin

Julia Leung, the head of the Securities and Futures Commission in Hong Kong, emphasized the enduring strength of Bitcoin as an “alternative asset.” Despite skepticism from central bankers and economists about the value of cryptocurrencies, Leung pointed out that Bitcoin has weathered numerous market cycles in its 15-year history.
Speaking at the Greenwich Economic Forum, Leung highlighted her support for Bitcoin’s underlying technology, distributed ledger (DLT), rather than the digital currency itself. She also commented on the growing interest in non-fungible tokens (NFTs), noting that while digital collectibles may be a passing trend, the technology behind them is being increasingly utilized for real-world assets.
Leung acknowledged that realizing the full potential of tokenization in the financial sector will require advancements in blockchain scalability and interoperability. Despite Hong Kong’s positive stance towards cryptocurrencies, evidenced by recent approvals for Bitcoin and Ethereum exchange-traded funds, authorities are cracking down on unlicensed crypto exchanges in the region.
In an effort to position itself as a crypto-friendly hub, Hong Kong is taking steps to regulate the industry, with the Securities and Futures Commission planning onsite inspections for crypto license applicants. Leung emphasized the importance of innovation and development in blockchain technology to enable wider financial inclusion, fractionalization, and secure ownership on the blockchain.