Hong Kong sets out requirements for asset tokenization in light of ‘market demand’

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The securities regulator intends to oversee intermediaries for tokenized securities and the tokenization of investment products.

Hong Kong’s securities watchdog today published two circulars aimed at overseeing the city’s digital asset tokenization activities, as it positions itself as a web3 hub in Asia.

“The existing legal and regulatory requirements governing the traditional securities markets continue to apply to Tokenised Securities,” the SFC said. The regulator’s latest guidance comes as the city is studying and exploring the use of tokenization. The Hong Kong Monetary Authority, its de facto central bank, in February issued the world's first tokenized green bond, raising around $100 million.Licensed trading platforms are required to put in place a compensation arrangement approved by the SFC to cover the potential loss of security tokens, according to the circular.

 

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Belgique Dernières Nouvelles, Belgique Actualités

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