Editorial:Tighten regulations on cryptocurrencies before it is too late

【明報專訊】The prices of cryptocurrencies have gone on rollercoaster rides, and different governments have announced tighter regulations on them. The Hong Kong government has also started to draft legislation to regulate the virtual asset markets. Among the cryptocurrencies introduced more than a decade ago, bitcoin is the most widely known. Its supporters believe that cryptocurrencies can increase the efficiency of transactions and be used as an important payment and settlement tool in the new era. However, there is growing scepticism about them, as some argue that cryptocurrencies like bitcoin do not have any intrinsic value, and are, at best, a substitute for gold. They contend that their highly volatile prices show that they are nothing more than a highly risky speculative instrument at the current stage.