Blockchain
Hong Kong SFC Head Praises Bitcoin
Julia Leung, head of Hong Kong’s Securities and Futures Commission, says Bitcoin is clearly demonstrating its power to remain an “alternative asset.”
Bitcoin, the largest cryptocurrency by market capitalization, is here to stay as it has managed to survive multiple “boom and bust” cycles over the past 15 years, according to the Securities and Futures Commission in Hong Kong (SFC) says boss Julia Leung.
Speaking at the Greenwich Economic Forum, SFC chief Leung recognized the prevailing skepticism among central bankers and economists regarding the intrinsic value of cryptocurrencies.
However, Leung highlighted the fact that over the past 15 years Bitcoin “has survived multiple boom and bust cycles, clearly showing its staying power as an alternative asset,” although he had to point out that its support leans more heavily on technology underlying of Bitcoin. – distributed ledger (DLT) – rather than the cryptocurrency itself.
“The potential benefits of DLT are clear. It has the potential to improve efficiency and reduce costs in the distribution, clearing, settlement and custody of real-world assets.”
Julia Leung
The SFC chief also addressed the hype around non-fungible tokens (NFTs), stating that while digital collectibles “may be a fad,” the enabling technology is “increasingly being used in real-world assets.” According to Leung, tokenization can lead to “broader financial inclusion, fractionation, custody and ownership, all on-chain.”
However, Leung admitted that fully realizing these benefits in the financial sector would require significant progress. He particularly highlighted the need for blockchain networks to expand and mature, highlighting the importance of interoperability between distributed networks across financial institutions and across borders.
Hong Kong’s positive attitude towards cryptocurrencies is evident as the region aims to position itself as a crypto-friendly hub, highlighted by the recent approval of spot exchange-traded funds (ETFs) on Bitcoin and Ethereum. However, despite this progress, authorities appear to be taking a tough stance on unlicensed cryptocurrency exchanges, threatening to shut down all unlicensed cryptocurrency exchanges in the region.