Fun

News Feed - 2023-11-02 08:11:30

Amaka Nwaokocha12 hours agoHong Kong issues rules for asset tokenization as interest mountsHong Kong’s securities regulator treats tokenized securities like traditional securities, subject to the same legal and regulatory norms.2132 Total views29 Total sharesListen to article 0:00NewsJoin us on social networksThe Securities and Futures Commission (SFC) of Hong Kong has issued two circulars to regulate digital asset tokenization.


The circulars offer instructions to intermediaries participating in tokenized securities activities and outline the criteria for tokenizing investment products authorized by the SFC.


The SFC considers tokenized securities as traditional securities with a tokenization layer. As a result, the exact legal and regulatory requirements that apply to conventional securities markets also apply to tokenized securities.


The regulator specified that tokenized securities offerings must adhere to the Companies Ordinance’s Prospectus Regime and the Securities and Futures Ordinance on offers of investment. Additionally, intermediaries providing advice on tokenized securities, managing tokenized funds, and facilitating secondary market trading on virtual asset trading platforms must comply with the existing conduct requirements for securities-related activities.Screenshot of the tokenized security circular. Source: SFC


The recent guidance from the regulator coincides with Hong Kong’s exploration of tokenization. In February, the Hong Kong Monetary Authority issued the world’s inaugural tokenized green bond, raising approximately $100 million.


The circular also states that trading platforms with licenses must establish SFC-approved compensation arrangements to safeguard against potential security token losses. To illustrate, operators of cryptocurrency trading platforms can show their adoption of protective measures like transfer restrictions or whitelisting to ensure the security of tokenized securities.


Related:​​JPEX scandal won’t hurt Hong Kong crypto vision: Financial Secretary


Conversations about tokenization have recently surged, and the SFC noted a heightened interest from financial institutions in tokenizing traditional financial instruments within global financial markets.


The regulatory body clarified that it has been reviewing different suggestions regarding tokenizing investment products, including those related to the primary offering and secondary trading of tokenized products on SFC-licensed virtual asset trading platforms. It added:“The SFC sees the potential benefits of tokenization to the financial markets, particularly in increasing efficiency, enhancing transparency, reducing settlement time and lowering costs for traditional finance, but it is also aware of the new risks arising from using this technology.” 


Magazine:Crypto City: Guide to Osaka, Japan’s second-biggest city# Law# Hong Kong# Tokens# Digital Asset# RegulationAdd reactionAdd reactionRead moreFrom payments to DeFi: A closer look at the evolving stablecoin ecosystemCrypto remittances offer cheaper alternative, but still face challenges to adoptionHong Kong police, regulator form crypto task force as JPEX saga unfolds

News Feed

Martin Young2 hours agoFirms have mere hours to deflect cyber attacks, warns cybersecurity CEOPalo Alto Networks CEO Nikesh Arora has warned that “bad actors are getting faster” and stressed that companies need to be
Synchron, ChatGPT to help paralyzed patients chat and text again
Tom Mitchelhill4 hours agoSynchron, ChatGPT to help paralyzed patients chat and text againNeurotech firm Synchron has integrated OpenAI’s generative AI tech into its brain-computer interface to help severely paralyzed
Bitcoin Hashrate Reaches All-Time High, Boost Could Lead to Record-Setting Difficulty Increase
Bitcoin Hashrate Reaches All-Time High, Boost Could Lead to Record-Setting Difficulty Increase During the first week of the new year, Bitcoin’s hashrate reached an all-time
Savannah Fortis3 hours agoUS expands export controls for AI semiconductor chips to ChinaThe expanded export controls of AI semiconductor chips include a new performance threshold, licensing requirements expansions and a
US Treasury to Attempt Coercing European Countries Into Implementing Sanctions Against Russia
US Treasury to Attempt Coercing European Countries Into Implementing Sanctions Against Russia Officials of the U.S. Treasury Department will travel to Europe this month with the ob
Jesse Coghlan1 hour agoSEC use of Terraform ruling hints Coinbase dismissal motion attack planThe SEC claims a court ruling gives it authority over crypto, setting up a possible counter-argument in dismissal motions brou
Turkey tops the world in stablecoin buying share vs. GDP
Helen Partz11 hours agoTurkey tops the world in stablecoin buying share vs. GDPStablecoin purchases in Turkey amount to 4.3% of GDP, the highest among global economies, according to Chainalysis.1076 Total views3 Total sh
BTC price suddenly drops 5% as Bitcoin rejects low CPI print
William Suberg9 hours agoBTC price suddenly drops 5% as Bitcoin rejects low CPI printBitcoin shrugs off notionally good news on US inflation with a BTC price plunge below $59,000.9777 Total views13 Total sharesListen to
Hong Kong regulator fast-tracks Bitcoin spot ETF approvals
Amaka Nwaokocha14 hours agoHong Kong regulator fast-tracks Bitcoin spot ETF approvalsAfter the approval of the Securities Regulatory Commission of Hong Kong, the Hong Kong Stock Exchange needs two weeks to finalize Bitco
Ana Paula Pereira2 hours agoCrypto Biz: Coinbase’s lending bet, a new ads policy at Google and Marathon’s mining performanceThis week’s Crypto Biz explores Coinbase"s lending platform, Marathon Digital’s latest B
Canadian Police Begin Unfreezing Accounts Tied to Freedom Convoy as Trudeau Revokes Emergencies Act
Canadian Police Begin Unfreezing Accounts Tied to Freedom Convoy as Trudeau Revokes Emergencies Act Canada’s prime minister, Justin Trudeau, has ended the use of the Emergen
Litecoin Attempts to Redeem Charlie Lee’s ‘Original Sin’ as LTC Markets Gain Momentum
Litecoin Attempts to Redeem Charlie Lee"s "Original Sin" as LTC Markets Gain Momentum Gradual warming to cryptocurrencies by financial companies combined with bo