Image Credit: Wikipedia

Bitcoin not regulated by the Hong Kong Monetary Authority (HKMA)

China Banking Regulatory Commission and Hong Kong Monetary Authority Back Off

11/15/2013

UPDATE 3: THIS ARTICLE WAS UPDATED ON 11/17/2013

Bitcoin is not regulated by the HKMA (original) via takungpao.com

Bitcoin is not regulated by the HKMA via Google Translate

Highlight From Google Translate

HKMA Chief Executive Norman Chan yesterday responded that bitcoin does not belong to the HKMA’s jurisdiction.

Who is the HKMA?

The Hong Kong Monetary Authority (HKMA) was established on 1 April 1993 by merging the Office of the Exchange Fund with the Office of the Commissioner of Banking. Its main functions and responsibilities are governed by the Exchange Fund Ordinance and theBanking Ordinance and it reports to the Financial Secretary.

Among its responsibilities are:

promoting the stability and integrity of the financial system, including the banking system helping to maintain Hong Kong’s status as an international financial centre, including the maintenance and development of Hong Kong’s financial infrastructure

A recent Wall Street Journal article of interest about the Honk Kong Dollar which is Pegged to the United States Dollar stated the following

Last year, in a rare call, Joseph Yam, former head of the Hong Kong Monetary Authority, who helped create the peg three decades ago, suggested the government should review the system and consider options including a switch to pegging to a basket of currencies or a complete float.

via WSJ: Happy Birthday, Hong Kong Dollar Peg

Update 1: While the HKMA is not regulating Bitcoin its not stopping them from having an opinion on the cryptocurrency:

But the Hong Kong Monetary Authority warns that the SAR, like many other places, has currently no regulations relating to virtual currencies. This kind of currency does not have any real financial support and leads to low transparency and volatile prices.

Not sure what a SAR is referencing here???

Update 2: “Special Administrative Regions of the People’s Republic of China (SAR) are autonomous territories that fall within the sovereignty of the People’s Republic of China” via Wikipedia (thanks to @As_Yu_like_it)

via Bitcoin punters take big hit

The Standard HK /Imogene Wong / November 11, 2013

Update 1 Continued

A Hong Kong Monetary Authority spokeswoman said: “The liquidity and value of transactions in the secondary market is extremely volatile and unpredictable, with no guarantee in relation to the amount of goods and services that can be exchanged.”

via Hong Kong-based entrepreneur planning Asia’s first bitcoin conference

South China Morning Post /Angela Meng and Danny Lee/ November 9 & 11, 2013

Update 3: Mixed Signals

HKMA spokesman has pointed out that Hong Kong is now under observation even though bitcoin usage is not common… other countries have no legal and regulatory oversight for Bitcoin. They will keep an eye on their usage in Hong Kong and overseas regulatory developments and consider the need for the establishment of monitoring mechanisms.

via Bitcoin prices hit a record high for the first time exceeded $ 400

Financial Source: China Business Network November 14, 2013

Google Translated

This comes about 30 days after the following announcement on Twitter

and front page coverage on Reddit

Also see: BitcoinExaminer Coverage

Banking Regulatory Commission doesn’t plan to regulate Bitcoin in China for now, says article