Hong Kong is set to introduce more policy papers and circulars targeting tokenized assets, stablecoins, and cryptocurrency trading. This move is part of the city’s ongoing efforts to establish a web3 hub in Asia.
Christopher Hui, Secretary for Hong Kong’s Financial Services and the Treasury, announced this initiative during the Hong Kong Fintech Week. Hui emphasized that the recent crackdowns on the JPEX crypto exchange have not deterred the government’s determination to cultivate the web3 market.
The Securities and Futures Commission (SFC) is expected to release circulars soon on intermediaries partaking in tokenized securities-related activities and tokenization of SFC-authorized investment products.
Further, the Hong Kong Monetary Authority and Financial Services and the Treasury Bureau plan to issue a joint consultation on the regulatory regime for stablecoin issuers.
Eddie Yue, Chief Executive of the HKMA, highlighted that tokenized bonds have already moved beyond the proof of concept stage and are being adopted in real transactions. Julia Leung, CEO of the SFC, stated that the regulator will issue two circulars about tokenization, focusing on identifying risks with the technology and the SFC’s requirements for issuing authorized funds.
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