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 past 15 years.
Despite skepticism from central bankers and economists about the true value of cryptocurrencies, Leung highlighted Bitcoin’s ability to survive multiple cycles of market ups and downs. She emphasized that while she leans more towards supporting Bitcoin’s underlying technology, distributed ledger (DLT), she recognizes its strength as an alternative asset.
During her speech at the Greenwich Economic Forum, Leung also discussed 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. She mentioned that tokenization could lead to greater financial inclusion, fractionalization, custody, and ownership, all on the blockchain.
Nevertheless, Leung acknowledged that realizing these benefits in the financial sector would require significant advancements. She highlighted the need for blockchain networks to scale up and mature, emphasizing the importance of interoperability between financial institutions and across borders.
Hong Kong’s positive stance on cryptocurrencies is evident as it strives to become a crypto-friendly hub, recently approving spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, authorities are cracking down on unlicensed crypto exchanges, threatening to shut down those operating without proper licenses in the region.
In an effort to regulate the industry, the Securities and Futures Commission will conduct on-site inspections for crypto license applicants, ensuring compliance with regulations.