Hong Kong government unveils virtual asset policy statement

Hong Kong’s financial authority, Financial Services and the Treasury Bureau, announced a series of policy measures to promote the growth of virtual assets in the city at the Hong Kong FinTech Week on Oct. 31.

The policy measures, focused on a new licensing regime for virtual asset providers, tokenization of green bonds and legalization of retail crypto trading, were detailed in a policy statement and introduced by ministers and regulators.

Hong Kong government unveils virtual asset policy statement
Policy measures include a VASP licensing regime, tokenization of green bonds and legalization of retail crypto trading. 

Hong Kong’s financial authority, Financial Services and the Treasury Bureau, announced a series of policy measures to promote the growth of virtual assets in the city at the Hong Kong FinTech Week on Oct. 31.

The policy measures, focused on a new licensing regime for virtual asset providers, tokenization of green bonds and legalization of retail crypto trading, were detailed in a policy statement and introduced by ministers and regulators.

The policy statement highlights the government’s desire to engage with international virtual asset exchanges to invite business opportunities through a clear and stable licensing regime. It also explained how the licensing regime will help spur financial innovation and used as an anti-money laundering and terrorism financing deterent.

The Hong Kong’s Securities and Futures Commission (SFC) will conduct an open market consultation to explore how retail investors can gain access to virtual assets to licensed exchanges.

SFC will also look at developing a regime to authorize virtual assets futures ETFs to provide exposure to mainstream virtual assets. The virtual asset futures ETFs will have to meet specific requirements such as management company, investment strategy, disclosure and education.

SFC also announced that tokenized securities should be treated in a similar way to existing financial instruments instead of complex products.

In addition, the Hong Kong government will also review property rights for tokenized assets and legitimacy of smart contracts as well the regulatory measures of stablecoins.  

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