Interest charge

Hong Kong will release a new STO charge; Here’s what that means

Hong Kong requires institutions to submit security token offering (STO) proposals to the SFC. The Charge is a recent attempt to foster digital asset innovation in the country.

Interested entities should discuss STOs with SFC

This charge is one of the products of a series of recent meetings held by the relevant agencies. Representatives from the Financial Services and Treasury Board (FSTB), Securities and Futures Commission (SFC) and Invest Hong Kong held discussions with industry experts on the development of STOs in the country.

The meetings the agencies held on September 14 and 16 followed previous discussions with virtual asset entities in August.

Elizabeth Wong, director of licensing and head of the FinTech unit at SFC, highlighted the agency’s support for the digital asset industry. Additionally, Wong noted that SFC’s support extends to the use of digital ledger technology (DLT) to offer titles.

According to Wong, the use of DLT in the securities offering promotes transparency, efficiency and profitability. She further debunked some misrepresentations of the FSC’s securities principles. Additionally, Wong said interested entities should discuss STOs with the SFC’s FinTech unit.

Hong Kong government steps up digital asset surveillance measures

Speaking at the meeting, Joseph Chan, Undersecretary of the FSTB, noted that Hong Kong is already home to several STOs. The recent directive is an attempt to establish proper on-site supervision.

Chan stressed the Hong Kong government’s willingness to adopt measures that will help the growth of the FinTech industry. He acknowledged that the FinTech sector is crucial in the development of Hong Kong’s wider economy.

We support the sustainable development of STO business in Hong Kong that meets relevant regulatory and compliance requirements, in particular to ensure investor protection and address AML/CFT risk ,

Chan added.

Due to a recent increase in the adoption rate, the Hong Kong government has stepped up measures to oversee the digital asset industry. In addition, institutions are increasingly interested in the scene. As previously reported, in April Samsung revealed plans to launch its first crypto ETF in Hong Kong by June.

Abigal .V. is a cryptocurrency writer with over 4 years of writing experience. She focuses on news writing and is adept at finding hot topics. She is a fan of cryptocurrencies and NFTs.

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