Julia Leung, chairman of the Hong Kong Securities and Futures Commission (SFC), recently acknowledged Bitcoin's remarkable resilience as an alternative asset at the Greenwich Economic Forum. Leung noted that Bitcoin has withstood multiple boom and bust cycles over the past 15 years, demonstrating its ability to endure despite significant volatility.

Leung's statements come as the SFC introduces new regulations for crypto exchanges, requiring them to obtain a license to serve retail investors in Hong Kong. While some have criticized these regulations as overly stringent, Leung emphasized the need for comprehensive measures to protect investors in the highly speculative and volatile cryptocurrency market.

Looking ahead, the SFC is preparing regulations for stablecoins, with the Hong Kong Monetary Authority (HKMA) recently completing a consultation on a proposed regime for stablecoin issuers. This regime will require issuers to provide full backing with high-quality and highly liquid reserve assets, aiming to bring stability and confidence to the cryptocurrency environment in Hong Kong.

The SFC is also involved in Project Ensemble, a tokenization initiative exploring the potential of a central bank digital currency (CBDC). This project will initially focus on tokenized deposits and offer a pilot application to test various tokenization use cases, including the trading and settlement of tokenized products.

In conclusion, Leung's statements highlight Bitcoin's enduring strength as an alternative asset, despite its volatility. The SFC's regulatory efforts aim to strike a balance between supporting the development of the Web3 ecosystem and protecting investors in the highly speculative cryptocurrency market. As Hong Kong continues to navigate the evolving landscape of digital assets, its regulatory approach will be closely watched by industry participants and investors alike.