Hong Kong’s SFC chief praises Bitcoin

Julia Leung, chairperson of the Hong Kong Securities and Futures Commission, said Bitcoin had clearly demonstrated its staying power as an “alternative asset”.

Hong Kong Securities and Futures Commission (SFC) chief Julia Leung says Bitcoin, the largest cryptocurrency by market cap, is here to stay, having survived multiple “boom and bust” cycles over the past 15 years.

Speaking at the Greenwich Economic Forum, SFC boss Leung acknowledged the prevailing skepticism among central bankers and economists about the true value of cryptocurrencies.

Still, Leung emphasized that Bitcoin has “survived multiple boom and bust cycles” over the past 15 years and has clearly demonstrated its enduring power as an alternative asset, although he had to point out that his support is based more on Bitcoin’s underlying technology. — distributed ledger (DLT) rather than the cryptocurrency itself.

“The potential benefits of DLT are clear. “It has the potential to increase efficiency and reduce costs in the distribution, exchange, settlement and storage of real-world assets.”

Julia Leung

The SFC chairman also addressed the hype around non-fungible tokens (NFTs), saying digital collectibles could be “fashionable” while the enabling technology is “increasingly being used in real-world assets.” According to Leung, tokenization could enable “broader financial inclusion, fragmentation, custody and ownership on-chain.”

However, Leung acknowledged that fully realizing these benefits in the financial sector will require significant advances. He emphasized the importance of interoperability between financial institutions and distributed networks across borders, noting that blockchain networks in particular need to scale and mature.

Hong Kong’s positive stance towards cryptocurrencies is evident as the region aims to position itself as a crypto-friendly hub; This is also highlighted by the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, despite this progress, authorities appear to be taking a tough stance against unlicensed crypto exchanges and are threatening to shut down all unlicensed crypto exchanges in the region.