The Hong Kong Securities and Futures Commission (SFC) has released a document outlining potential requirements for the tokenization of investment products.

“Tokenisation of investment products refers to the creation of blockchain-based tokens that represent or aim to represent ownership in an investment product,” the document explained.

Hong Kong SFC Continues Risk Assessment

According to the recent document, the SFC will persist in examining the broader market and collaborating with other government entities to assess alternative approaches and determine whether their proposal aligns with global standards:

“The SFC will keep in view and continue to engage with market participants on proper measures to address the risks relating to secondary trading of tokenised SFC-authorised investment products.”

The primary stipulations demand responsible product management. Furthermore, it requires the maintenance of ownership records and the implementation of a cybersecurity risk management plan.

Additionally, it emphasizes that product providers should have the capability to secure third-party audits or verification of the tokenization agreement’s management and operational integrity.

Hong Kong SFC’s Ongoing Crypto Exchange Crackdown

Furthermore, the SFC states that firms should Go to Source to See Full Article
Author: Ciaran Lyons

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