In recent years, we have seen many traditional media outlets branching out into or migrating to online platforms. However, the players have mostly found that it’s difficult to turn online traffic into income, such as advertising revenue.
To address this issue, industry veteran Kin Ko has created Likecoin, a crytocurrency that viewers can use to reward content creators.
In a recent chat, Ko noted that it’s not that easy to run a cryptocurrency business in Hong Kong, as the local authorities don’t have a clear policy stance towards the new technology.
Although the government keeps highlighting the benefits of blockchain technology, officials still view cryptocurrency transactions with much suspicion.
There is no clear go-ahead signal but at the same time authorities are not banning such activities.
Such ambiguous policy stance is harmful for Fintech developers as well as cryptocurrency investors.
Ko and I share the belief that authorities should regulate the sector in order to give investors better protection, which in turn would support the development of cryptocurrency businesses.
Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), announced on November 1 that funds that invest more than 10 percent of their assets in virtual currencies will need to be licensed by the SFC.
This kind of initiative would hopefully contribute to healthy development of cryptocurrency in the city.
This article appeared in the Hong Kong Economic Journal on Nov 13
Translation by Julie Zhu
[Chinese version 中文版]
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