BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
FOLLOW
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result

Hong Kong’s Securities and Futures Commission Unveils Guidance on Tokenized Assets

BlockNews.com Team by BlockNews.com Team
November 2, 2023
in Breaking News, Business, Crypto, Featured
Hong Kong's Securities and Futures Commission Unveils Guidance on Tokenized Assets

#image_title

Share on TwitterShare on Reddit
  • The Securities and Futures Commission (SFC) of Hong Kong has issued new guidance on tokenizing securities as Hong Kong seeks to become a digital asset hub in Asia.
  • Tokenized securities must follow existing laws and regulations for traditional securities like requirements for offerings and intermediary conduct.
  • Licensed virtual asset trading platforms need an SFC-approved compensation fund to cover potential losses of security tokens, though some tokens may be excluded on a case-by-case basis.

The Securities and Futures Commission (SFC) of Hong Kong has issued new guidance on the tokenization of securities as the city positions itself as a hub for digital assets in Asia. The circulars provide oversight for intermediaries engaging in tokenized securities activities and outline requirements for tokenizing SFC-authorized investment products.

Requirements for Tokenized Securities

The SFC views tokenized securities as traditional securities with a tokenization wrapper. Existing legal and regulatory frameworks that govern traditional securities continue to apply. Offerings must follow prospectus requirements and intermediaries must adhere to conduct requirements for securities activities.

Requirements for Virtual Asset Trading Platforms

Licensed platforms must establish an SFC-approved compensation fund to cover potential losses of security tokens. The SFC may exclude certain tokens on a case-by-case basis if the platform demonstrates effective risk mitigation.

๐Ÿšจ NEWS: Hong Kong's Securities and Futures Commission issues guidelines on tokenized securities.

This move comes after the city's first tokenized green bond issuance.

Hong Kong continues its mission to be the leading web3 hub in Asia and around the world. pic.twitter.com/INHxYSxSWd

— BlockNews.com (@blocknewsdotcom) November 2, 2023

Growing Interest in Tokenization

The SFC has observed growing interest in tokenizing traditional financial instruments. It has assessed proposals for both primary issuance and secondary trading of tokenized products. While recognizing the potential benefits of efficiency and transparency, the SFC is also aware of new risks from applying this technology.

Conclusion

As a leading Asian financial center, Hong Kong is actively exploring the tokenization of securities to increase capital market efficiency. With its latest guidance, the SFC aims to facilitate innovation in digital assets while ensuring investor protection.

Tags: BlockchainBusinesscryptoCrypto ExchangeHong KongTokenWeb3
TweetShareShare
BlockNews.com Team

BlockNews.com Team

The go-to news source for Cryptocurrency, Blockchain, Technology, & Finance

DON'T MISS THESE! HOT OFF THE PRESS

Web3 Companies Launch Major Grants to Fuel Crypto Market Growth
Breaking News

Web3 Firms Unveil Grants to Bolster Crypto Ecosystem Following Market Revival

December 7, 2023
Blockchain Technology Spearheads Climate Action at COP28
Breaking News

Blockchain Technology Spearheads Climate Action at COP28

December 7, 2023
Meta Leads the Fight Against AI Misuse with Invisible Image Watermarks
Breaking News

Meta Leads the Fight Against AI Misuse with Invisible Image Watermarks

December 7, 2023
Judge Approves Guilty Plea of Binance's Changpeng Zhao
Breaking News

Judge Approves Guilty Plea of Binance’s Changpeng Zhao

December 6, 2023
Google Announces New AI Model Gemini, Here is What you Need to Know
Breaking News

Google Announces New AI Model Gemini, Here is What you Need to Know

December 6, 2023
NeoTokyo The Crypto Gaming Hub
Breaking News

NeoTokyo: The Crypto Gaming Hub

December 6, 2023
Load More
Next Post
Fidelity's Jurrien Timmer Coins Bitcoin as "Exponential Gold," Highlighting it as a Hedge Against Inflation

Fidelity's Jurrien Timmer Coins Bitcoin as "Exponential Gold," Highlighting it as a Hedge Against Inflation

Decentraland's MANA Token Pumps 47% in Two Weeks, Leading Gaming and Metaverse Cryptocurrencies

Decentraland's MANA Token Pumps 47% in Two Weeks, Leading Gaming and Metaverse Cryptocurrencies

ProShares Debuts its Short Ether Strategy ETF (SETH), Opening Opportunities to Capitalize on Ether's Volatility

ProShares Debuts its Short Ether Strategy ETF (SETH), Opening Opportunities to Capitalize on Ether's Volatility

Related News

bitcoin(s)

Bitcoin Price Remains Unchanged Above $22K- Is The Recovery Over?

March 7, 2023
SBF FTX

SEC Files Complaint Against FTX CEO for Alleged $1.8 Billion Fraud

January 20, 2023
PYUSD

PayPal Partners with Paxos to Launch the PYUSD Stablecoin

September 28, 2023

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
Discord Twitter
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Web3 Firms Unveil Grants to Bolster Crypto Ecosystem Following Market Revival December 7, 2023
  • Blockchain Technology Spearheads Climate Action at COP28 December 7, 2023
  • Meta Leads the Fight Against AI Misuse with Invisible Image Watermarks December 7, 2023

ยฉ 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

ยฉ 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.