Hong Kong: encryption assets are not the target assets for forex fund investment

Wu said that, according to the Oriental Daily News, when asked whether to consider including digital assets and cryptocurrencies in the fiscal reserve, and to consider using forex funds to continue purchasing and holding them for the long term, the Acting Secretary for Financial Services and the Treasury of Hong Kong, Mr. Chen Haolin, replied in writing that the forex fund invests in a diversified range of asset classes and markets globally, to diversify risks and enhance long-term returns. Encryption assets are not the target assets for the forex fund investment. The external investment managers of the HKMA also invest in a diversified range of asset classes and markets globally. While it is not ruled out that individual investments involving encryption assets may be made by external investment managers at different times, the relevant proportion is very small. In addition, the Treasury will consult the Legislative Council's Financial Affairs Panel this year on the regulation of the issuer of fiat currency stablecoins and will submit the relevant draft regulations to the Legislative Council this month. As for over-the-counter trading services for virtual assets, the authorities are adjusting proposals based on the results of the public consultation conducted earlier this year and will conduct a second round of public consultation next year. They will also propose a licensing regime for regulating the provision of virtual asset custody services providers next year.