Hong Kong Advances Crypto Regulation and Tokenization Initiatives
Hong Kong is reinforcing its risk-based regulatory framework for cryptocurrencies, applying consistent rules across similar activities regardless of technology. Financial Secretary Paul Chan emphasized the principle of "same activity, same risk, same regulation," ensuring trading platforms and other crypto services are licensed and monitored.
The city is piloting tokenized deposits with the Hong Kong Monetary Authority (HKMA), enabling faster and more secure digital transactions. Stablecoin licensing is expected within months, mandating strict safety and transparency standards for issuers.
Tokenization efforts extend to green bonds, with $2.1 billion issued since 2023. Blockchain-based registration and trading aim to enhance efficiency while supporting sustainable finance. Hong Kong's strategy positions it as a hub for digital asset innovation.
