The CEO of the Securities and Futures Commission of Hong Kong, Ada Li, stated this week at the Greenwich Economic Forum that Bitcoin has clearly demonstrated its resilience as an alternative asset. Despite the majority of central bankers and economists believing that virtual assets such as Bitcoin and Ethereum have no intrinsic value, Li acknowledged this view but pointed out that Bitcoin has shown its resilience as an alternative asset over the past 15 years.
However, Li also emphasized in her speech that regulatory support for Hong Kong’s Web3 ecosystem 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. Li revealed that the commission is preparing a new system to regulate stablecoins pegged to fiat currencies. Recently, the Hong Kong Monetary Authority completed a consultation on the proposed system, which includes requiring stablecoin issuers to ensure they are fully backed by high-quality and highly liquid reserve assets.
