Hong Kong’s regulator has announced the rules companies offering tokenized investment products to consumers must follow.
The Securities and Futures Commission (SFC) has published guidance on how to tokenize securities and futures contracts in response to the demand for tokenized investment products.
Articles that companies must comply with in areas such as product management, public disclosure, intermediary institutions and personnel competence have been determined.
Accordingly, companies must be responsible for the management of agreements made for tokenization, inform the public about the risks related to the agreement, work with legally regulated intermediaries, and work with personnel who have experience and expertise in the relevant field.
On the one hand, the SFC is considering allowing retail investors to participate in spot cryptocurrency exchange-traded funds (ETFs).