Amid calls for the regulation of Bitcoin in the aftermath of the MyCoin debacle, Reuters reports that the Hong Kong government has rebuffed requests for new legislation aimed at curtailing the use of Bitcoin because it is unlikely to have a significant impact on the Hong Kong financial system.

Responding to questions asked in the Legislative Council, Professor KC Chan of the Financial Services and the Treasury Bureau said that bitcoin is not legal tender, that the price is volatile and that its use as a medium of exchange in Hong Kong is negligible. For these reasons, Professor KC Chan believes there is no need for the government to consider the introduction of new legislation to regulate or prohibit Bitcoin at this time.

Despite claims that Bitcoin poses no threat to the Hong Kong economy and that its use is negligible, Professor KC Chan added that the Hong Kong government and its financial regulators will closely monitor the development of Bitcoin and will participate with international organisations, such as the Financial Action Task Organisation in the hope it can maintain communication with its members in regards to Bitcoin's future.