The Securities and Futures Commission (SFC) of Hong Kong laid down the business requirements for offering tokenized securities and other investment products in a circular released Nov. 2.
The market demand in Hong Kong for tokenized investment products combined with the various benefits of blockchain technology became one of the key drivers for the SFC to consider issuing public guidelines on tokenizing the securities and futures markets.
With the conclusion of the closely watched central financial work conference, China has outlined future priorities and directions for the pursuit of the country’s high-quality financial development. pic.twitter.com/Jq4ax0cb3X
The circular broadly details 12 points, emphasizing four aspects — tokenization arrangement, disclosure, intermediaries and staff competence — for eligibility in issuing tokenized securities-related activities.
The intent behind the tokenization of SFC-authorized investment products is tied to rising market demand and the government’s willingness to facilitate market development. Considering that the underlying product can meet all the applicable product authorization requirements and the additional safeguards to address the associated risks, the SFC stated:
“By adopting a see-through approach, the SFC is of the view that it is appropriate to allow primary dealing of tokenized SFC-authorised investment products.”
Providers are expected to take full responsibility for their tokenized products, ensure effective record-keeping, and demonstrate operational soundness, among other factors. The SFC further clarified:
“Product Providers should not use public-permissionless blockchain networks without additional and proper controls.”
Regarding disclosure requirements, providers need to clearly disclose whether settlements happen off-chain or on-chain and prove the ownership of tokens at all times. Lastly, the SFC will also require providers to “have at least one competent staff with relevant experience and expertise to operate and/or supervise the tokenization arrangement and to manage the new risks relating to ownership and technology appropriately.”
Despite federal efforts to tokenize investment products, the interest in crypto for Hong Kong locals witnessed a significant decline.
The recent JPEX scandal in Hong Kong has sent shockwaves through the crypto community. A new survey shows how it’s affecting trust in the digital asset space. Thread pic.twitter.com/pmbQdbFAND
A survey conducted by the Hong Kong University of Science and Technology’s business school revealed that the alleged $166-million JPEX scandal negatively impacted investors’ willingness to invest in crypto.
Out of the 5,700 respondents, 41% would prefer not to hold digital assets.
Volodymyr Zelenskyy has said the Ukrainian people “are truly thankful” for US support, hours after talks with Donald Trump descended into a row at the White House.
In a lengthy social media post, Mr Zelenskyy said: “I always begin with words of gratitude from our nation to the American nation”.
The Ukrainian president insisted the US-Ukraine relationship “is more than just two leaders” but it was “crucial” for his country to have Mr Trump’s support.
He added: “American people helped save our people. Humans and human rights come first. We’re truly thankful. We want only strong relations with America, and I really hope we will have them.”
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Mr Zelenskyy will meet Sir Keir Starmer in Downing Street on Saturday afternoon after his plane landed at Stansted Airport.
It comes ahead of a major summit hosted by the UK prime minister on Sunday, where more than a dozen European and EU leaders including Mr Zelenskyy will meet to discuss the Ukraine war and security.
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0:28
Zelenskyy’s plane lands in UK
The Ukrainian president had travelled to Washington DC to attempt to secure a ceasefire agreement after three years of war with Russia and a possible mineral deal with the US.
The meeting descended into a shouting match in front of cameras and journalists.
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10:47
Watch Trump and Zelenskyy clash
Mr Vance told Mr Zelenskyy: “I think it’s disrespectful for you to come to the Oval Office to try to litigate this in front of the American media.
“You should be thanking the President [Trump] for trying to bring an end to this conflict.”
Image: Mr Zelenskyy and Mr Trump clash. Pics: Reuters
‘You’re gambling with World War Three’
The Ukrainian president tried to object but Mr Trump spoke over him and told him: “You’re gambling with the lives of millions of people.
“You’re gambling with World War Three, and what you’re doing is very disrespectful to the country, this country that’s backed you far more than a lot of people say they should have.”
Mr Zelenskyy defended himself and his country, openly challenging Mr Trump on his softer approach to Vladimir Putin and urging him to make “no compromises with a killer”.
President Trump will host the first White House Crypto Summit on March 7, bringing together industry leaders to discuss regulations, stablecoins and Bitcoin reserve legislation.
A US judge tossed the SEC’s case against Hex founder Richard Heart, stating it couldn’t decide whether he defrauded investors of $12.1 million because the US lacked jurisdiction.