Regulation
Hong Kong and the regulation of cryptocurrencies: Bitcoin for fiscal reserves
The field of cryptocurrency regulation in Hong Kong is also undergoing major changes. Lawmaker Johnny Ng, among others, outlined his outlook. Among the various highlights, Ng said that bitcoin should be considered in the country’s strategic financial reserves, provided it is compliant.
Hong Kong and the regulation of cryptocurrencies: the legislator sees Bitcoin as a tax reserve
Following the pro-bitcoin speech by US presidential candidate Donald Trump last Saturday, there is also movement in the area of cryptocurrency regulation in Hong Kong.
In fact, Hong Kong Legislative Council member, Johnny Ngstepped forward on X for describe his perspectives regarding the inclusion of Bitcoin and Web3.
Former US President Trump recently delivered a speech at the US Bitcoin Summit, sharing his views on Bitcoin. Bitcoin and Web3 have already attracted the attention and development of countries around the world, and Hong Kong is also actively becoming a technology promotion center… pic.twitter.com/e1UFCb6g1q
– Johnny Ng 吴杰庄 (@Johnny_nkc) July 28, 2024
First, Ng said that Bitcoin and Web3 have become important steps in the development of globalization. Blockchain technology has helped solve many innovations in finance and other real-world applications, which is why Ng said its development should be encouraged globally.
Immediately afterwards, the Hong Kong legislature refers to consider Bitcoin as an official financial reserve of a country or region. In this sense, Ng believes that it should be considered strategically, given that global acceptance of Bitcoindefined as “digital gold”, is constantly increasing worldwide.
The third point of Ng’s speech then speaks on the Web3 ecosystem and how Hong Kong is already at the forefront in terms of regulation which encourages its development. In this regard, Ng predicts that The city could soon attract competitive talent and capital, cryptocurrency and blockchain exchanges, cryptocurrency projects and businesses.
Hong Kong and cryptocurrency regulation after Trump’s speech at Bitcoin conference
Ng’s speech refers to what it was said last saturday by Donald Trump, the pro-bitcoin candidate for the 2024 US presidential election.
In fact, even Hong Kong’s legislature pointed out that Bitcoin is viewed by the public as “digital gold” in the context of its technology.
At the same time, Trump talked about gold in his planned speech as an asset that Bitcoin could soon surpass, in terms of market capitalization.
In this regard, Trump had highlighted how In just 15 years of existence, Bitcoin has managed to conquer the marketcurrently placing itself in the ninth position as the world’s most valuable asset.
Among his promises, then, Trump spoke of maintaining a ‘strategic national reserve of bitcoins’ and to “never sell” BTC seized by the government.
From here, even Hong Kong’s Ng has opened up to the idea of considering Bitcoin as the official financial reserve of the country or a regionHong Kong lawmakers stress the importance of including Bitcoin in strategic financial reserves, provided it is compliant.
Legislation on stablecoins
In mid-July, Hong Kong made headlines for describing A detailed regulation on stablecoins, following a public consultation.
In practice, the Financial Services and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) announced the results of the consultations and outlined the next steps in the legislative process.
Authorities plan to present the bill by the end of the year, with a focus on strong regulations and protections for users.
Among the key points could be the requirement for stablecoin issuers to obtain a license with the ability to maintain reserves in licensed banks in Hong Kong or other jurisdictions.