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 intrinsic value of cryptocurrencies, Leung highlighted Bitcoin’s ability to survive various market cycles, demonstrating its strength as a viable investment option. She emphasized her support for Bitcoin’s underlying technology, distributed ledger (DLT), rather than the cryptocurrency itself.
Leung also commented on the growing interest in non-fungible tokens (NFTs), noting that while digital collectibles may be a passing trend, the technology behind them is being increasingly utilized for real-world assets. Tokenization, according to Leung, could lead to greater financial inclusion, fractionalization, custody, and ownership on the blockchain.
Acknowledging that realizing these benefits in the financial sector will require significant advancements, Leung emphasized the need for blockchain networks to scale up and mature. She stressed the importance of interoperability among financial institutions and across borders.
Hong Kong’s favorable stance towards cryptocurrencies is evident as the region strives to establish itself as a crypto-friendly hub, as seen in the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, authorities are also cracking down on unlicensed crypto exchanges, with plans to shut down those operating without proper licenses.
In an effort to regulate the industry, the Hong Kong SFC will conduct onsite inspections for crypto license applicants, ensuring compliance with regulations and safeguarding the interests of investors.