Regulation
Hong Kong and Cryptocurrency Regulation: Bitcoin for Fiscal Reserves
There is also movement in the field of cryptocurrency regulation in Hong Kong, with regulator Johnny Ng outlining his outlook. Among other highlights, Ng says that Bitcoin should be considered for the country’s strategic financial reserves, provided it is compliant.
Hong Kong and Cryptocurrency Regulation: Lawmaker Sees Bitcoin as a Fiscal Reserve
Following the pro-bitcoin speech by US presidential candidate Donald Trump last Saturday, there has also been movement in the field of cryptocurrency regulation in Hong Kong.
In fact, the member of the Legislative Council of Hong Kong, Johnny Nghe came forward on X for describe his perspectives regarding the inclusion of Bitcoin and Web3.
Former US President Trump recently gave a speech at the US Bitcoin Summit, sharing his views on Bitcoin. Bitcoin and Web3 have already attracted the attention and development of countries around the world, and Hong Kong is also actively becoming a hub for promoting the technology… photo.twitter.com/e1UFCb6g1q
— Johnny Ng 吴杰庄 (@Johnny_nkc) July 28, 2024
First, Ng said that Bitcoin and Web3 have become important stages in the development of globalization. In particular, Blockchain technology has solved many innovations in finance and other real-world applications, and for this reason, according to Ng, its global development should be encouraged.
Soon after, the Hong Kong legislator refers to considering Bitcoin as the official financial reserve of a country or region. In this sense, Ng believes that it should be considered strategically, given that the global acceptance of BTCdubbed “digital gold”, it is continuously increasing throughout the world.
The third point of Ng’s speech then speaks on the Web3 ecosystem and how Hong Kong is already at the forefront in terms of regulation which encourages its development. In this regard, Ng foresees that The city could soon attract competitive talent and capital, crypto-exchanges and blockchain, cryptocurrency projects and companies.
Hong Kong and Cryptocurrency Regulation After Trump’s Speech at Bitcoin Conference
Ng’s speech refers to what it was said last saturday from Donald Trump, the pro-bitcoin candidate for the 2024 US presidential election.
Indeed, even Hong Kong lawmakers have emphasized that Bitcoin is seen by the public as “digital gold” in the context of its technology.
At the same time, Trump mentioned gold in his speech he meant as an asset that Bitcoin could soon surpass in terms of market capitalization.
In this regard, Trump had underlined how In just 15 years of existence, Bitcoin has managed to conquer the marketcurrently placed in the ninth place as the most valuable asset in the world.
Among his promises, therefore, Trump spoke of maintaining a “strategic national reserve of bitcoin” and to “never sell” government-seized BTC.
From here, too Hong Kong’s Ng has opened up to the idea of considering Bitcoin as the official financial reserve of the country or a regionHong Kong regulators stress that the inclusion of Bitcoin in strategic financial reserves, provided it is compliant.
Stablecoin legislation
In mid-July, Hong Kong made news for outlining A detailed regulation on stablecoins, following a public consultation.
In practice, the Financial Services and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) have announced the results of the consultations and outlined the next steps in the legislative process.
Authorities plan to present the bill by the end of the year, with particular attention to rigorous regulations and protections for users.
Among the key points could be a requirement for stablecoin issuers to obtain a license, with the possibility of holding reserves at licensed banks in Hong Kong or other jurisdictions.