Hong Kong Finance Secretary Says New Tokenization Rules in the Pipeline

In a recent announcement, the Financial Services and the Treasury Bureau (FSTB) has unveiled a series of critical fintech and tokenization initiatives in Hong Kong.

The FSTB’s ambitious roadmap includes the launch of a new Integrated Fund Platform (IFP). It also includes the promotion of real economy-related applications and innovations by the virtual asset (VA) and web3 sectors.

Hong Kong Finance Regulators Want Safe and Beneficial Tokenization Rules

The Financial Secretary, Mr. Paul Chan, expressed the government’s commitment to bolstering fintech development in Hong Kong. He emphasized the importance of these initiatives in enhancing the competitiveness of Hong Kong’s financial services industry and the real economy.

Chan stated:

“Empowering financial institutions to accelerate digitalization and product innovation, better serving the real economy, and providing members of the public with more convenient, less expensive, and inclusive financial services.”

He further noted that the policy measures promoted in recent years,

“clearly demonstrate our firm support for the rapid and robust development of the fintech sector.”

To provide regulatory clarity, the Securities and Futures Commission (SFC) will issue circulars on tokenized securities-related activities and also the tokenization of SFC-authorised investment products.

All in all, this move aims to illuminate regulatory expectations and enhance investor protection. The government may also broaden regulations to include virtual asset transactions beyond VA trading platforms.

Study ranks Hong Kong the most ready for crypto and asset tokenization. Source: Forex Suggest

Visa Jumps on Tokenization Trend

In a related development, Visa has underscored the importance of tokenization technology in bridging the gap between banks and cryptocurrencies.

Visa stated,

“Tokenization technology is expected to bring new opportunities to the industry in the coming years, with increasing attention from the financial industry due to the potential transformation of interoperability between banks and digital assets.”

This sentiment aligns with Hong Kong’s active exploration of central bank digital currency (CBDC) uses and benefits.

Read more: What is The Impact of Real World Asset (RWA) Tokenization?

The Secretary for Financial Services and the Treasury, Mr. Christopher Hui, also highlighted the comprehensive fintech initiatives this year to reflect strategic views and visions for taking the market forward.

Hui said,

“From launching a new IFP to welcoming e-CNY applications, and promoting real economy related applications and innovations by the VA and web3 sector, these initiatives will contribute to the real economy and provide further impetus for growing our fintech ecosystem.”

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, today (November 2) announced a series of major initiatives for fintech development in Hong Kong in the Main Conference of Hong Kong FinTech Week 2023.

The FSTB and Visa’s insights predict a promising future for Hong Kong’s fintech sector, with upcoming opportunities and transformations.

Source