Hong Kong Securities and Futures Commission’s CEO, Leung Fung Yee, attended the Greenwich Economic Forum this week and stated that Bitcoin has clearly demonstrated its resilience as an alternative asset. While most central bankers and economists may believe that virtual assets like Bitcoin and Ethereum have no intrinsic value, Leung Fung Yee acknowledged this viewpoint but emphasized that Bitcoin has shown resilience as an alternative asset over the past 15 years.
However, in her speech, Leung Fung Yee also emphasized that regulatory support for Hong Kong’s Web3 ecosystem should not be seen as endorsement of the virtual asset class. She added that the Hong Kong Securities and Futures Commission is also working towards regulating stablecoins. Leung Fung Yee revealed that the Commission is preparing a new framework to regulate stablecoins pegged to fiat currencies. Recently, the Hong Kong Monetary Authority has completed a consultation on the proposed framework, including requirements for stablecoin issuers to ensure full backing by high-quality and highly liquid reserve assets.
