- 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.
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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