Hong Kong Authorities to Discuss Including Bitcoin in Regional Reserves
Date: 2024-07-29 Author: Henry Casey Categories: IN WORLD
A member of the Hong Kong Legislative Council, Johnny Ng, has announced plans to engage in talks with various stakeholders to explore the possibility of including Bitcoin in the region’s financial reserves. This statement comes after former US President Donald Trump spoke at the Bitcoin 2024 conference in Nashville, where he promised to create a strategic BTC reserve if re-elected.
In his account on the X.com platform, Johnny Ng noted that Bitcoin’s global recognition is steadily growing. The public is increasingly perceiving Bitcoin as “digital gold.” In this regard, in his opinion, it is necessary to consider including the first cryptocurrency in the region’s reserves if it meets the established requirements.
Development of Web 3.0 and Blockchain Technologies
The official also emphasized that Web 3.0 and blockchain technologies represent significant technological and application innovations. Hong Kong should continue to develop its ecosystem to attract competitive public chains, exchanges, and other projects that promote the technological development of the industry.
"Currently, Hong Kong is at the forefront of the region in terms of regulatory compliance and development of the crypto industry. I believe that the government will open up the market gradually, progressively, and responsibly," Johnny Ng said.
Hong Kong, as a special administrative region of China, has its own cryptocurrency laws, different from mainland China, where crypto transactions and mining are prohibited. Last year, the local government launched an initiative to turn Hong Kong into a crypto hub by introducing a licensing regime for crypto exchanges and allowing them to serve retail customers.
ETF Introduction and Exchange Attraction
In April of this year, Hong Kong’s regulator allowed Bitcoin and Ethereum-based spot exchange-traded funds (ETFs) to enter the market. This marks an earlier introduction of spot ETH ETFs than in the US, where trading in such funds began on US exchanges only on July 23.
Johnny Ng has been a vocal advocate for early approval of crypto funds, which would allow Hong Kong to lead the industry through innovative policies. He also insisted on the need to educate the public about working with virtual assets.
In June, Ng’s colleague Duncan Chiu expressed concern that overly strict licensing rules were discouraging major global exchanges from entering Hong Kong. Global platforms such as OKX, Gate, and HTX have withdrawn their applications for licenses to operate in the local market.
Johnny Ng and other Hong Kong lawmakers are actively discussing the possibility of including Bitcoin in the region’s financial reserves, recognizing the growing importance of cryptocurrencies on a global level. Their efforts are aimed at further developing the crypto industry in Hong Kong, creating favorable conditions for attracting exchanges and projects, as well as educating the population on issues of working with virtual assets.
