Julia Leung, the head of Hong Kong’s Securities and Futures Commission, believes that Bitcoin has proven itself to be a resilient “alternative asset” over the years. Despite skepticism from central bankers and economists about the intrinsic value of cryptocurrencies, Leung highlighted Bitcoin’s ability to survive numerous market cycles, showcasing its longevity in the financial landscape.

Speaking at the Greenwich Economic Forum, Leung expressed her support for Bitcoin’s underlying technology, the distributed ledger (DLT), rather than the cryptocurrency itself. She also addressed the growing excitement around non-fungible tokens (NFTs), noting that while digital collectibles may be a passing trend, the technology behind them is increasingly being utilized in real-world assets. According to Leung, tokenization has the potential to enhance financial inclusion, fractionalization, custody, and ownership on the blockchain.

Despite the potential benefits of blockchain technology, Leung acknowledged that further development is needed for full implementation in the financial sector. She emphasized the importance of scalability and interoperability across distributed networks to facilitate seamless transactions among financial institutions globally.

Hong Kong’s progressive approach to cryptocurrencies is evident in its efforts to establish itself as a crypto-friendly jurisdiction, as demonstrated by the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, authorities are taking a firm stance against unlicensed crypto exchanges, with plans to shut down all unauthorized platforms in the region.

In a move to regulate the sector, the Securities and Futures Commission of Hong Kong will conduct onsite inspections for crypto license applicants, signaling the region’s commitment to fostering a secure and compliant crypto environment.

Julia Leung, the head of Hong Kong’s Securities and Futures Commission, believes that Bitcoin has proven itself as a resilient “alternative asset” over the past 15 years. Despite skepticism from central bankers and economists about the value of cryptocurrencies, Leung highlighted Bitcoin’s ability to survive various market cycles, demonstrating its enduring appeal.

Speaking at the Greenwich Economic Forum, Leung expressed her support for Bitcoin’s underlying technology, distributed ledger (DLT), more so than the cryptocurrency itself. She 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 used for real-world assets. Leung emphasized the potential of tokenization to enhance financial inclusion, fractionalization, custody, and ownership through blockchain technology.

However, Leung acknowledged that realizing these benefits would require significant advancements in blockchain networks and interoperability across financial institutions and borders. Despite this, Hong Kong has shown a positive attitude towards cryptocurrencies, positioning itself as a crypto-friendly hub with the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). Nevertheless, authorities are cracking down on unlicensed crypto exchanges in the region, threatening to shut them down to ensure regulatory compliance.

In an effort to regulate the crypto industry, the Hong Kong SFC is conducting on-site inspections for crypto license applicants, signaling a commitment to maintaining a safe and transparent environment for digital asset trading in the region.