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Julia Leung, chief executive of Hong Kong’s Securities and Futures Commission (SFC), noted that Bitcoin “has gone through many boom and bust cycles.” Leung said virtual assets are “highly speculative in nature” and that the regulator has security measures in place to protect investors.
Julia Leung, CEO of the Hong Kong Securities and Futures Commission, stated that bitcoin has clearly demonstrated its staying power as an alternative asset.
Most central bankers and economists would say virtual assets like bitcoin and ether have no inherent value, Leung said in a speech at the Greenwich Economic Forum Hong Kong on Wednesday.
“I disagree. While the intrinsic value debate continues, it is a fact that 15 years later Bitcoin has gone through many boom and bust cycles and has clearly demonstrated its staying power as an alternative asset,” Leung said. “More clearly, its core technology — DLT — is here to stay.”
Leung’s comments on bitcoin come as the SFC officially introduced a requirement for crypto trading platforms to obtain a license to serve retail investors in Hong Kong.
Hong Kong lawmaker Duncan Chiu has expressed concerns about “overly stringent” regulations for licensing crypto exchanges, criticizing that these rules prevent major global exchanges from entering Hong Kong and reduce market confidence.
In his speech, Leung stated that support for the Web3 ecosystem in Hong Kong “should not be taken as an endorsement of the VA asset class.”
“As things stand, VAs are known for their highly speculative nature and extreme price volatility,” Leung added. “Therefore, we have ensured that extensive security measures are in place to protect investors while meeting their demands.”