- Ren Zhigang of the HKMA questioned whether the Hong Kong government is promoting virtual assets too actively.
- Ren said that if retail traders buy cryptocurrencies because of the rising prices, it is akin to entering a casino.
- The Hong Kong government works on the introduction of stablecoin regulation in 2024.
Ren Zhigang, former president of the Hong Kong Monetary Authority (HKMA), compared investing in virtual assets to entering a casino, striking a cautious note at a moment when the city is working on the development or a regulation framework for stablecoins.
In response to the former president’s thoughts on virtual assets and their promotion in Hong Kong, the Secretary for Financial Services and the Treasury explained that work on the introduction of stablecoin regulation is ongoing and will likely be completed next year.
Hong Kong to set policy for stablecoin
The Hong Kong government is working on the development of the stablecoin regulation, as reported by financial news site Anue.com. Hong Kong’s government has been working on welcoming cryptocurrency exchanges and business to the city, whose government has taken a pro-crypto stance and has introduced legislation that allows retail investors to trade crypto assets.
In this context, Ren said that the government’s promotion of virtual assets may be going too far. He said,
"If you buy virtual assets because of rising prices, you might as well enter a casino."
In response, Xu Zhengyu, Secretary for Financial Services and the Treasury said that the financial industry needs to take the lead in cryptocurrency regulation and development in the future.
The Hong Kong government’s work includes improving traditional advantages, and the introduction of stablecoin regulation to conform to the image of a comprehensive financial center, Xu said.
Virtual assets therefore hold great importance in Hong Kong’s asset dispersion, decarbonization/green finance, and digital development. Third-party services, such as private capital participation in bonds, also have room for development through the use of virtual assets.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.