Secretary for Financial Services and the Treasury Professor KC Chan: No Need for Bitcoin Regulation in Hong Kong
29 March 2015, 06:11
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The statement by Secretary for
Financial Services and the Treasury Professor KC Chan is encouraging the
stakeholders.
In the press release from the Hong Kong government it has come to the public that Professor Chan describes Bitcoin as limited in scope. The professor is of the view that Bitcoin does not pose a substantial threat to Hong Kong’s financial system given its current lack of widespread adoption in the region.
In the statement issued by Professor Chan it has become clear that the Government does not consider it necessary to introduce at the moment new legislation to regulate trading in such virtual commodities or prohibit people from participating in such activities. Also, should the need arise, Hong Kong regulators can draw from existing legal statutes.
Professor Chan also suggested that his office and others will continue to watch developments in the Bitcoin space. He informed the media that he has outlined how financial institutions in Hong Kong are subject to strict reporting requirements when establishing or maintaining business relationships with customers or clients who are operators of any schemes or businesses relating to virtual commodities.
He concluded that the Government and financial regulators will keep a close watch on the development of Bitcoin and other virtual commodities, and maintain contacts with their counterparts in other places through active participation in meetings of the relevant international organizations such as the Financial Action Task Force.
In the press release from the Hong Kong government it has come to the public that Professor Chan describes Bitcoin as limited in scope. The professor is of the view that Bitcoin does not pose a substantial threat to Hong Kong’s financial system given its current lack of widespread adoption in the region.
In the statement issued by Professor Chan it has become clear that the Government does not consider it necessary to introduce at the moment new legislation to regulate trading in such virtual commodities or prohibit people from participating in such activities. Also, should the need arise, Hong Kong regulators can draw from existing legal statutes.
Professor Chan also suggested that his office and others will continue to watch developments in the Bitcoin space. He informed the media that he has outlined how financial institutions in Hong Kong are subject to strict reporting requirements when establishing or maintaining business relationships with customers or clients who are operators of any schemes or businesses relating to virtual commodities.
He concluded that the Government and financial regulators will keep a close watch on the development of Bitcoin and other virtual commodities, and maintain contacts with their counterparts in other places through active participation in meetings of the relevant international organizations such as the Financial Action Task Force.
