Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui, announced new regulations for the tokenization sector during the Hong Kong Fintech Week.
He dismissed concerns about the JPEX scandal affecting the growth of the web3 market.
The upcoming regulations will focus on token issuance, wallets, and other virtual asset regulations beyond exchanges.
The regulations will also impact traditional finance, including intermediaries engaging in tokenized securities and tokenization of SFC-authorized investment products.
The Hong Kong Monetary Authority (HKMA) CEO, Eddie Yue, sees a bright future for tokenization driving increased usage of blockchain payments, stablecoins, and tokenized deposits.
However, he acknowledges there are still challenges to address, such as legal considerations and interoperability challenges.
HSBC also revealed its tokenized deposit experiments with Ant Group as part of the HKMA sandbox.