A senior Hong Kong official has indicated that the government does not see a need for legislation that would regulate or ban bitcoin activities.
In response, Chan described bitcoin as limited in scope, noting that it does not pose a substantial threat to Hong Kong's financial system given its current lack of widespread adoption in the region.
Chan added that, should the need arise, Hong Kong regulators can draw from existing legal statutes, both domestic and international, to deal with instances of fraud or criminal activities that involve digital currencies.
“The police will take enforcement action if they find information which involves criminal conduct,” he said.
Watchful stance outlined
In his response, Chan suggested that his office and others will continue to watch developments in the bitcoin space.
Further, he outlined how financial institutions in Hong Kong are subject to strict reporting requirements "when establishing or maintaining business relationships with customers or clients who are operators of any schemes or businesses relating to virtual commodities".
Reiterating past warnings issued by the Hong Kong government, Chang stated that “the highly speculative nature” of bitcoin presents a potential risk to investors.
More Mycoin details
"The Commercial Crime Bureau of the Police is investigating the case, and has searched various locations and seized a number of computers, tablets, mobile phones, account records, etc.," he said.
Chang added that those arrested during the investigation have been released on bail.
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