Hong Kong Legislative Council elected member Johnny Ng recently suggested that the national foreign exchange fund could invest in cryptocurrencies. The Acting Secretary for Financial Services and the Treasury, Chan Ho-lam, did not directly approve this idea, but seemed surprisingly open to it.
Source: Coin Radar
The council member focused his proposal on the potential monetary gains from crypto investments, and Chan acknowledged that Hong Kong might make small investments in the future.
The potential thawing of cryptocurrencies in Hong Kong
The news comes from local media reports as well as transcripts of Ng's proposals and responses. In recent months, Hong Kong has been growing as a potential cryptocurrency hub and approved a Bitcoin ETF earlier this year.
In November, the Hong Kong Exchanges and Clearing Limited (HKEX) also launched a cryptocurrency index. Unfortunately, unlike the US spot Bitcoin ETF, the cryptocurrency ETF on the Hong Kong Exchange has not achieved significant success.
Council member Johny Ng has been advocating for pro-cryptocurrency policies in Hong Kong. For example, in July, he advocated for establishing Bitcoin reserves in Hong Kong, clearly reflecting Trump's proposal in the United States. Today, his proposal focuses on cryptocurrencies as a high-performance investment option.
“Reports indicate that financial enterprises around the world are increasing their investment in digital assets. Since the beginning of this year, the price of Bitcoin, hailed as 'digital gold', has soared in tandem, and the development of global currencies will move towards digitization,” Ng began.
He subsequently asked the government if there are plans to improve regulations or appoint a committee to study the market potential of cryptocurrencies. He also proposed the benefits of including digital assets and cryptocurrencies in its fiscal reserves.
The Acting Secretary for Financial Services and the Treasury, Chan Ho-lam (Joseph Chan), articulated the official response. His stance is very moderate towards the industry, claiming that cryptocurrencies “are bringing new innovation opportunities... to the financial system,” and noted that it is integrating well into global financial institutions.
“Although cryptocurrency assets are not the target assets of the foreign exchange fund, external managers also invest in diversified asset classes and markets around the world. It cannot be ruled out that there may be investments involving cryptocurrencies in investment operations... but the relevant proportion is negligible."
Compared to some past hostility in Hong Kong, this is a very encouraging response. Chan casually mentioned anti-crypto analogies, such as its potential criminal applications, and explicitly acknowledged that crypto is evolving on the world stage. This echoes a ruling by the Chinese Supreme Court in November that directly affirmed the legitimate uses of cryptocurrencies.
Despite China's notorious ban on Bitcoin, there are still some signs that Bitcoin may unfreeze. At the BRICS summit in October, the Chinese representatives supported cryptocurrency and blockchain-based solutions to promote international efforts to de-dollarize.
Although these messages are far from full acceptance, the positive future of cryptocurrencies in the region is undoubtedly heading towards brightness.
