The Securities and Futures Fee (SFC) of Hong Kong laid down the enterprise necessities for providing tokenized securities and different funding merchandise in a round launched Nov. 2.
The market demand in Hong Kong for tokenized funding merchandise mixed with the assorted advantages of blockchain know-how turned one of many key drivers for the SFC to think about issuing public tips on tokenizing the securities and futures markets.
With the conclusion of the carefully watched central monetary work convention, China has outlined future priorities and instructions for the pursuit of the nation’s high-quality monetary improvement. pic.twitter.com/Jq4ax0cb3X
— SFC TALK (@sfc_talk) November 2, 2023
The round broadly particulars 12 factors, emphasizing 4 features — tokenization association, disclosure, intermediaries and workers competence — for eligibility in issuing tokenized securities-related actions.
The intent behind the tokenization of SFC-authorized funding merchandise is tied to rising market demand and the federal government’s willingness to facilitate market improvement. Contemplating that the underlying product can meet all of the relevant product authorization necessities and the extra safeguards to handle the related dangers, the SFC said:
“By adopting a see-through strategy, the SFC is of the view that it’s acceptable to permit main dealing of tokenized SFC-authorised funding merchandise.”
Suppliers are anticipated to take full duty for his or her tokenized merchandise, guarantee efficient record-keeping, and show operational soundness, amongst different components. The SFC additional clarified:
“Product Suppliers mustn’t use public-permissionless blockchain networks with out extra and correct controls.”
Concerning disclosure necessities, suppliers want to obviously disclose whether or not settlements occur off-chain or on-chain and show the possession of tokens always. Lastly, the SFC may even require suppliers to “have a minimum of one competent workers with related expertise and experience to function and/or supervise the tokenization association and to handle the brand new dangers regarding possession and know-how appropriately.”
Associated: HSBC and Ant Group check tokenized deposits beneath HKMA sandbox
Regardless of federal efforts to tokenize funding merchandise, the curiosity in crypto for Hong Kong locals witnessed a major decline.
The current JPEX scandal in Hong Kong has despatched shockwaves via the crypto group. A brand new survey reveals the way it’s affecting belief within the digital asset house.
Thread pic.twitter.com/pmbQdbFAND— tanjiro (@tanjiroNFTs) October 17, 2023
A survey performed by the Hong Kong College of Science and Expertise’s enterprise faculty revealed that the alleged $166-million JPEX scandal negatively impacted traders’ willingness to put money into crypto.
Out of the 5,700 respondents, 41% would favor to not maintain digital property.
Journal: Slumdog billionaire 2: ‘High 10… brings no satisfaction’ says Polygon’s Sandeep Nailwal