Hong Kong Monetary Authority former President compares virtual asset purchase to entering a casino

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. 

Also read: Altcoin season looks unlikely until 2024 despite mass accumulation, expert says

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.

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