Stamina Gauge! Bitcoin Statement from Hong Kong's Top Executive.

Hong Kong Securities and Futures Commission (SFC) chairman Julia Leung emphasized Bitcoin's durability as an alternative asset in her speech at the Greenwich Economic Forum. Leung noted Bitcoin's ability to survive despite multiple boom and bust cycles over the past 15 years. While central bankers and economists often argue that cryptocurrencies like Bitcoin and Ethereum lack intrinsic value, Leung noted that the durability of these assets and the Distributed Ledger Technology (DLT) behind them is undeniable.

These statements by Leung coincide with the new licensing regime introduced by the SFC for cryptocurrency exchanges. These new regulations now require these platforms to obtain a license to serve individual investors in Hong Kong.

However, these regulatory changes have drawn criticism from some quarters. Hong Kong lawmaker Duncan Chiu said the regulations were overly strict and discouraged major global exchanges from entering the Hong Kong market, negatively impacting market confidence.

Julia Leung stated that although they support the development of the Web3 ecosystem in Hong Kong, this should not be misunderstood as an endorsement of the crypto asset (VA) class. Leung stated that cryptocurrencies are highly speculative and subject to extreme price volatility. To maintain and balance investor demand, #SFC has taken comprehensive measures to protect investors in this volatile market.

Looking ahead, the SFC is preparing for legal regulations for stablecoins. Leung noted that the Hong Kong Monetary Authority (#HKMA ) recently completed a consultation on a proposed regime for stablecoin issuers. These new regulations will require issuers to provide full backing with high-quality, highly liquid reserve assets.

The move is seen as part of a broader effort to bring stability and trust to the cryptocurrency landscape in Hong Kong. SFC also takes part in Project Ensemble, a tokenization initiative launched by the HKMA to explore the potential of a central bank digital currency (#CBDC )
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