Caroline Leung, Chief Executive Officer of the Securities and Futures Commission of Hong Kong, stated this week at the Greenwich Economic Forum that Bitcoin has clearly demonstrated its viability as an alternative asset. Despite the belief held by most central bankers and economists that cryptocurrencies like Bitcoin and Ethereum have no intrinsic value, Leung acknowledged this perspective but emphasized that Bitcoin has shown resilience as an alternative asset over the past 15 years.
However, Leung also highlighted in her speech that regulatory support for the Web3 ecosystem in Hong Kong should not be seen as an endorsement of the virtual asset class. She added that the Securities and Futures Commission of Hong Kong is also working on regulating stablecoins. Leung revealed that a new framework is being prepared to regulate stablecoins pegged to fiat currencies, with recent consultations conducted by the Hong Kong Monetary Authority requiring stablecoin issuers to ensure full backing by high-quality and highly liquid reserve assets.
