Hong Kong Regulates Tokenized Securities Like Traditional Assets

Hong Kong's securities regulator treats tokenized securities like traditional securities, subject to the same legal and regulatory norms.

The Securities and Futures Commission (SFC) of Hong Kong issued two circulars to regulate digital asset tokenization.

The circulars offer instructions to intermediaries participating in tokenized securities activities.

They outline the criteria for tokenizing SFC-authorized investment products.

The SFC considers tokenized securities as traditional securities with a tokenization layer.