Hong Kong is demanding that institutions bring proposals of security token offerings (STOs) to the SFC. The charge is a recent attempt to foster digital asset innovation within the country.
Interested entities should discuss STOs with SFC
This charge is one of the products of a series of recent meetings held by relevant agencies. Representatives of the Financial Services and the Treasury Bureau (FSTB), the Securities and Futures Commission (SFC), and Invest Hong Kong held discussions with industry experts on the development of STOs in the country.
The meetings which the agencies held on September 14th and 16th followed previous discussions with virtual asset entities in August.
Elizabeth Wong, Director of Licensing and Head of FinTech Unit at the SFC stressed the agency’s support of the digital asset industry. Furthermore, Wong noted that the SFC’s support extends to the use of digital ledger technology (DLT) for offering securities.
According to Wong, the use of DLT in offering securities promotes transparency, efficiency and cost-effectiveness. She further debunked some misrepresentations of the FSC’s principles regarding securities. Additionally, Wong stated that interested entities should discuss STOs with the FinTech unit of the SFC.
Hong Kong government is ramping up measures to oversee digital assets
Speaking in the meeting, Joseph Chan, Under Secretary of the FSTB noted that Hong Kong is already home to several STOs. The recent guideline is an attempt at establishing proper oversight in the scene.
Chan highlighted the Hong Kong government’s readiness to enact measures that will contribute to the growth of the FinTech industry. He acknowledged that the FinTech sector is crucial in the development of the broader economy of Hong Kong.
We support the sustainable development of STO business in Hong Kong that meets the relevant regulatory and compliance requirements particularly on ensuring investor protection and addressing the risk on the anti-money laundering/combating of terrorist-financing aspect,
Chan added.
Due to a recent surge in adoption rate, the Hong Kong government has ramped up measures to oversee the digital asset industry. In addition, institutions are showing increasing interest in the scene. As previously reported, in April, Samsung revealed plans to launch its first crypto ETF in Hong Kong by June.
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