Liu Yixiang, Hong Kong Financial Services and the Treasury Bureau: will maintain communication with local regulatory authorities to ensure that appropriate virtual asset systems can be developed in due course

On April 3, the Secretary for Financial Services and the Treasury of the Hong Kong, Liu Yixiang, responded to the question raised by the Honourable WONG Wai-wai in the Legislative Council meeting. In recent years, the cases relating to virtual assets have been on the rise, mainly involving fraud and extortion. The number of cases involving virtual assets in the year of 2018 was 324. In 2016 and 2017, there were 67 cases and 50 cases involving bitcoin (the number of cases in which the police only kept bitcoin-related cases). In the case of investment fraud, the number of fraud cases received by the Police in 2016-2017 was 134, 137 and 212 respectively. The Financial Services and the Treasury and financial regulators will continue to closely monitor the development of virtual asset activities in Hong Kong and around the world. The SFC will also continue to review existing measures to properly consider whether to formulate more effective monitoring methods. By actively participating in relevant international organization meetings, such as the International Securities Commission and the Financial Stability Board, we will maintain communication with local regulators to ensure that appropriate systems are in place to meet the potential risks arising from virtual asset transactions.