when

The Hong Kong Treasury Department does not consider crypto to be a ‘target asset’ for the nation’s Exchange Fund, even though it does invest a small portion of funds into crypto assets.
According to local media outlet <a href="https://hk.on.cc/hk/bkn/cnt/news/20241211/bkn-20241211140753661-1211_00822_001.html" target="_blank" rel="noopener noreferrer nofollow">On CC</a>, Hong Kong Councilor Johnny Ng suggested that the government should consider adding cryptocurrencies into its fiscal reserves. Ng said that the government could use the <a rel="noopener noreferrer nofollow" href="https://crypto.news/tag/hong-kong/">Hong Kong</a> Exchange Fund to hold and buy <a rel="noopener noreferrer nofollow" href="https://crypto.news/tag/digital-assets/">crypto assets</a>.
Secretary for Financial Services and the Treasury, Joseph Chan responded to Ng’s request with a written letter, explaining that crypto assets are not the “target asset” for Hong Kong Exchange Fund investments.
However, Chan does confirm at the Legislative Council meeting that the Hong Kong Exchange Fund does hold a small amount of crypto assets through external investment managers. Though, he said the proportion is “very small.”
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/hong-kong-looks-to-speed-up-crypto-regulation-amid-rising-sector-demands/"> Hong Kong looks to speed up crypto regulation amid rising sector demands </a>
The <a rel="noopener noreferrer nofollow" href="https://crypto.news/hong-kongs-hkma-launches-grant-to-accelerate-bond-tokenization-adoption/">Hong Kong Monetary Authority</a> external investment managers often diversify the fund’s asset classes and markets with assets and stocks from around the world, depending on the asset performance evaluated by external investment managers at different times.
Chan pointed out that authorities issued the “Policy Declaration on the Development of Virtual Assets in Hong Kong” in October 2022, indicating that the government and regulatory agencies adhere to the same principle of “same business, same risks, same rules” when it comes to virtual assets.
In addition, authorities have introduced a licensing system for virtual asset service providers through amendments to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance Bill to ensure that crypto trading platforms comply with international standards.
As previously reported by <a rel="noopener noreferrer nofollow" href="https://crypto.news/hong-kong-looks-to-speed-up-crypto-regulation-amid-rising-sector-demands/">crypto.news</a>, the Hong Kong government is looking for ways to speed up the making of crypto regulations in order to keep up with the rapidly evolving global crypto industry.
Chan did not elaborate on how the Hong Kong government plans to fast-track its crypto regulations. However, he does acknowledge that the virtual assets sector provides many financial innovation opportunities as well as “complexities to the financial system.”
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/hong-kongs-hkma-launches-grant-to-accelerate-bond-tokenization-adoption/"> Hong Kong’s HKMA launches grant to accelerate bond tokenization adoption </a>

Hong Kong Treasury says crypto is not a ‘target asset’ for its Exchange Fund

crypto.news

Other articles published on Dec 11, 2024

Crypto spot trading volume exploded 141% in November

Bitcoin-Backed USDa Becomes Second-Largest CDP Project With $700M TVL

Analyst Predicts Dogecoin (DOGE) Surge to $3: Is It Realistic?

Survive the Altcoin Market Crash! Smart Strategies for Crypto Investors

Weekly Article Recap: 11/18-11/22

XYZVerse targets $10 from $0.001 — poised to beat PEPE and SHIB in 2025

Join our free newsletter for daily crypto updates!