Head of SFC commends Bitcoin
Julia Leung, the head of Hong Kong’s Securities and Futures Commission, believes that Bitcoin has proven itself to be a resilient “alternative asset” despite facing numerous cycles of volatility over the past 15 years.
Speaking at the Greenwich Economic Forum, Leung acknowledged the skepticism surrounding the value of cryptocurrencies among central bankers and economists. However, she emphasized that Bitcoin’s ability to survive multiple market fluctuations demonstrates its endurance as a valuable asset. Leung expressed her admiration for the underlying technology of Bitcoin, known as distributed ledger (DLT), rather than the digital currency itself.
Leung also commented on the growing trend of non-fungible tokens (NFTs), stating that while digital collectibles may be a passing trend, the technology behind them is increasingly being utilized in real-world assets. She highlighted the potential benefits of tokenization, such as financial inclusion, fractional ownership, and secure custody, all facilitated through blockchain technology.
Despite the promising outlook for cryptocurrencies in Hong Kong, Leung acknowledged that further advancements are needed for the full realization of these benefits in the financial sector. She emphasized the importance of scalability and interoperability among blockchain networks to facilitate seamless transactions across institutions and borders.
Hong Kong’s supportive stance on cryptocurrencies is evident through recent regulatory approvals for spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, authorities have also taken a firm stance against unlicensed crypto exchanges, threatening to shut down any operating without proper authorization.
In an effort to enhance oversight and compliance, the Securities and Futures Commission plans to conduct onsite inspections for crypto license applicants, demonstrating Hong Kong’s commitment to fostering a safe and regulated cryptocurrency environment.
