Regulating crypto is not an easy brief when you back the technology but not the scams and speculation that come with it. It’s a tightrope that Julia Leung, the CEO of the Hong Kong Securities and Futures Commission (SFC), has had to walk the past several years.

“While the intrinsic value debate will continue, it is a fact that 15 years on, Bitcoin has survived multiple cycles of boom and bust, clearly showing its staying power as an alternative asset. More clearly, its underlying technology –– DLT –– is here to stay,” she said at a conference in the city this summer.

But Leung had harsher words for NFTs. “So far, a deep gulf has emerged between non-fungible tokens (NFTs), the metaverse and real-world assets…Take the well-known Bored Ape Yacht Club (BAYC) as an example. Its release was all the hype back in 2021, but both its floor price and trading volume have plummeted of late.”

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This contrast between what is and isn’t valuable in crypto has been central to how the SFC has tried to regulate crypto in Hong Kong over the last few years, and Leung has been right at the center of this discussion.

Taking the helm as SFC CEO in January 2023, Leung became the first woman to lead the regulator since its inception in 1989. The start of her tenure coincided with a pivotal moment for Hong Kong as it sought to establish itself as a hub for crypto and web3.

Shortly after Leung took the reins at the SFC, the commission released a consultation paper on regulated virtual asset platforms serving retail users.

The paper was a precursor to the implementation of a comprehensive licensing regime for virtual asset service providers (VASPs) in June of 2023. The move allowed retail trading for a select group of cryptocurrencies under stringent safeguards, reflecting Leung’s commitment to balancing innovation with investor protection.

The move has had mixed success.. Several international exchanges pulled out of the licensing regime at the last minute, including OKX and HTX (formerly Huobi). And while there are now three companies holding full licenses in the city, traders continue to use unlicensed international platforms.

Leung has faced other crypto-related challenges as well. One of the most significant tests came with the collapse of JPEX, an unlicensed crypto platform that abruptly ceased operations in early 2023 following the announcement that the SEC was investigating it

The SFC was heavily criticized for failing to protect customers, with over 2,600 victims losing over $200 million. Despite over 70 arrests, nobody has been charged in connection with the exchange to date.