Head of the 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” over the past 15 years. Despite skepticism from central bankers and economists about the true value of cryptocurrencies, Leung highlighted Bitcoin’s ability to withstand numerous market cycles of ups and downs.
Speaking at the Greenwich Economic Forum, Leung expressed her support for Bitcoin’s underlying technology, distributed ledger (DLT), rather than the digital currency itself. She noted that while Bitcoin has shown staying power as an alternative asset, her focus is more on the potential of DLT.
Leung also discussed the hype surrounding non-fungible tokens (NFTs), suggesting that while digital collectibles may be a passing trend, the technology behind them is increasingly being utilized in real-world assets. She emphasized that tokenization could lead to greater financial inclusion, fractionalization, custody, and ownership, all on the blockchain.
Despite recognizing the benefits of blockchain technology, Leung acknowledged that significant advancements are needed for its full realization in the financial sector. She highlighted the importance of scalability and interoperability across distributed networks to enable seamless transactions among financial institutions and across borders.
Hong Kong’s supportive attitude towards cryptocurrencies is evident in its efforts to establish itself as a crypto-friendly hub, exemplified by the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, authorities are also cracking down on unlicensed crypto exchanges, threatening to shut down those operating without proper licenses.
In a move to ensure compliance, the Hong Kong SFC plans to conduct onsite inspections for crypto license applicants, signaling the region’s commitment to regulating the crypto industry while fostering innovation and growth.
