Head of Securities and Futures Commission applauds Bitcoin

Julia Leung, the head of Hong Kong’s Securities and Futures Commission, believes that Bitcoin has proven itself as a resilient “alternative asset” despite facing multiple cycles of volatility over the last 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 endurance through various market fluctuations demonstrates its viability as a long-term investment option.
While Leung expressed her support for Bitcoin’s underlying technology, distributed ledger (DLT), she also addressed the growing popularity of non-fungible tokens (NFTs). She noted that while digital collectibles may be a passing trend, the technology behind them has practical applications in real-world assets, such as enabling wider financial inclusion and fractionalization.
Despite the potential benefits of tokenization, Leung recognized that significant advancements are needed in blockchain scalability and interoperability to fully realize these advantages in the financial sector. She stressed the importance of establishing seamless connections between distributed networks to facilitate cross-border transactions.
Hong Kong’s forward-thinking approach to cryptocurrencies is evident in its efforts to become a crypto-friendly hub, exemplified by the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, authorities have also taken a strict stance against unlicensed crypto exchanges, with plans to crack down on illegal operations in the region.
In line with this regulatory stance, the Hong Kong SFC plans to conduct onsite inspections for crypto license applicants to ensure compliance with regulatory standards and protect investors in the rapidly evolving crypto market.