1 year ago
The intent down the tokenization of SFC-authorized concern products is tied to the rising marketplace request and the government’s willingness to facilitate marketplace development.
The Securities and Futures Commission (SFC) of Hong Kong laid down the concern requirements for offering tokenized securities and different concern products successful a circular released Nov. 2.
The marketplace request successful Hong Kong for tokenized concern products combined with the assorted benefits of blockchain exertion became 1 of the cardinal drivers for the SFC to see issuing nationalist guidelines connected tokenizing the securities and futures market.
With the decision of the intimately watched cardinal fiscal enactment conference, China has outlined aboriginal priorities and directions for the pursuit of the country's high-quality fiscal development. pic.twitter.com/Jq4ax0cb3X
— SFC TALK (@sfc_talk) November 2, 2023The circular broadly details 12 points, emphasizing 4 aspects — tokenization arrangement, disclosure, intermediaries and unit competence — for eligibility successful issuing tokenized securities-related activities.
The intent down the tokenization of SFC-authorized concern products is tied to the rising marketplace request and the government’s willingness to facilitate marketplace development. Considering that the underlying merchandise tin conscionable each the applicable merchandise authorization requirements and the further safeguards to code the associated risks, the SFC stated:
“By adopting a see-through approach, the SFC is of the presumption that it is due to let superior dealing of tokenized SFC-authorised concern products.”Providers are expected to instrumentality afloat work for their tokenized products and guarantee effectual record-keeping, ample hazard appetite and show operational soundness, among different factors. The SFC further clarified:
“Product Providers should not usage public-permissionless blockchain networks without further and due controls.”Regarding disclosure requirements, providers request to intelligibly disclose whether settlements hap off-chain oregon on-chain and beryllium the ownership of tokens astatine each times. Lastly, the SFC volition besides necessitate providers to “have astatine slightest 1 competent unit with applicable acquisition and expertise to run and/or supervise the tokenization statement and to negociate the caller risks relating to ownership and exertion appropriately.”
Related: HSBC and Ant Group trial tokenized deposits nether HKMA sandbox
Despite national efforts to tokenize concern products, the involvement successful crypto for Hong Kong locals witnessed a important decline.
The caller JPEX ungraded successful Hong Kong has sent shockwaves done the crypto community. A caller survey shows however it's affecting spot successful the integer plus space.
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A survey conducted by The Hong Kong University of Science and Technology’s concern schoolhouse revealed that the alleged JPEX’s $166-million scandal negatively impacted the investor’s willingness to put successful crypto.
Out of the 5,700 respondents, 41% of respondents would similar not to clasp virtual assets.
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