Finance Secretary KC Chan said yesterday that Hong Kong does not need regulations to oversee the sale of Bitcoins as they do not pose a threat to the financial system.
Chan said that Bitcoins are not widely used in the city and therefore cannot be categorised as an e-currency.
Currently, very few vendors in Hong Kong accept the virtual currency as a method of payment.
Chan added that existing laws and police monitoring of online crimes are sufficient for dealing with transactions involving Bitcoins.
Chan noted that since Feb. 11, more than 100 people with combined losses of HKD180 million have complained to the police about being unable withdraw or trade in their bitcoins through a local company.
And in February, the SCMP reported that the closure of MyCoin, a local Bitcoin trading company, left around 3,000 people in the dirt with combined losses of HKD3 billion. Most weren’t able to fully recover their investments.
Despite this, Chan insisted there is no need for regulation, but warned that due to the speculative nature of Bitcoin, people should be more wary of participating in virtual currency trading.
Don’t buy what you can’t lose down the back of a sofa.
Photo: Antana via Flickr
