The financial authorities in Hong Kong have released a statement on their commitment to better regulating the cryptocurrency sector. The financial secretary also disclosed a number of trial programs in the official notice. The release of a fresh batch of tokenized green bonds for institutional investors was the most prominent of them.
According to the notification, the issuance of government green bonds would begin by the year’s end. As a result, it would be the first government green bond ever to be tokenized.
Financial Secretary Paul Chan Mo-Po stated that although they must fully utilise the potential provided by cutting-edge technologies, they must also be careful to guard against market volatility and potential risks. Financial authorities are also eager to utilize decentralized technology while taking necessary “guard” against potential risks and market volatility.
A digital Hong Kong dollar was mentioned in the notice, which made reference to a central bank digital currency (CBDC) and noted that it was a possibility. The study would concentrate on how it might act as the “backbone” and “pillar” linking fiat currency and digital assets. In addition, the Hong Kong Monetary Authority disclosed the results of a follow-up consultation on stablecoin regulation.
Hong Kong wants to improve the regulatory oversight of the crypto sector to allow cryptocurrency trading. A news outlet indicated that a required licensing scheme for cryptocurrency platforms might be implemented by March.
According to the sources, regulators will allow a list of major coins but won’t support any particular cryptocurrencies. The goal of the entire operation is to reignite interest in Hong Kong as a global financial centre. It appears that a significant component of the policy will also include mandatory licensing.