Hong Kong reveals new stablecoin rules and tokenized bond plans

Hong Kong’s latest integer plus blueprint places stablecoin regularisation and plus tokenization astatine the bosom of its strategy to go a planetary crypto and fintech hub.

The argumentation statement, issued connected Thursday, introduces a model known arsenic “LEAP,” targeting ineligible clarity, ecosystem expansion, real-world applications, and endowment development. It builds connected the instauration laid by the government’s archetypal argumentation statement successful October 2022.

As portion of the caller framework, the authorities volition instrumentality a licensing authorities for stablecoin issuers starting Aug. 1, which “will facilitate the improvement of real-world usage cases,” per the announcement.

The Securities and Futures Commission (SFC) volition oversee licensing for integer plus (DA) dealing and custody providers, portion the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority volition pb a ineligible reappraisal to enactment the tokenization of real-world assets (RWAs).

Hong Kong’s 2nd argumentation connection connected integer assets. Source: HK Gov

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Hong Kong to modulate tokenized bonds

The authorities besides plans to “regularise the issuance of tokenized Government bonds” and beforehand tokenized ETFs by clarifying their stamp work treatment.

“With that, the Government welcomes the instauration of secondary marketplace trading of these tokenized ETFs connected licensed DA trading platforms oregon done different channels,” the argumentation connection said.

Beyond bonds and funds, the authorities said it aims to incentivize tokenization crossed broader sectors, including metals and renewable vigor assets, demonstrating “the versatility of this exertion crossed sectors specified arsenic precious metals (e.g. gold)... and star panels.”

The argumentation besides includes caller measures to boost innovation, specified arsenic a Cyberport backing programme aimed astatine supporting standout blockchain and integer plus projects.

In a statement, Financial Secretary Paul Chan said the caller model “showcases the applicable usage of tokenization” and aims to “build a much flourishing DA ecosystem which volition integrate the existent system with societal life.”

The authorities said it volition soon motorboat nationalist consultations connected caller licensing regimes.

Related: Hong Kong to make crypto tracking instrumentality for wealth laundering

Hong Kong eyes crypto derivatives

Earlier this month, Hong Kong’s fiscal authorities said they are preparing to present integer plus derivatives trading for nonrecreational investors.

The inaugural follows caller approvals for spot crypto ETFs, futures products, and staking services, including a greenish airy for HashKey to connection staking successful April, arsenic the metropolis positions itself arsenic a starring integer concern hub.

Furthermore, successful May, the city’s Legislative Council passed the Stablecoin Bill, paving the mode for a regulated model that could presumption the portion arsenic a planetary person successful integer assets and Web3 development.

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