Hong Kong’s financial authorities made a commitment to regulate the cryptocurrency industry better. In November last year, the financial secretary revealed several trial programs in an official announcement.
One notable program is the release of tokenized green bonds for institutional investors. However, the issuance of these government green bonds was scheduled to start by the end of the last year, making it the first time a government green bond has been tokenized.
However, according to the latest announcement, the Financial Secretary of Hong Kong declared that the government would soon release tokenized green bonds, aiming to target institutional investors. They also aspire to implement the proper regulatory guidelines to unlock the potential of Web 3.0 technology.
HK Government Completed Crypto Legislative Work
Paul Chan Mo-po, the Financial Secretary, reported that numerous tech companies and startups had contacted about establishing international headquarters or expanding in Hong Kong in the last two months. Many also consider listing in Hong Kong under the policy of “attracting businesses and talent.
In a recent speech, Chan Mo-Po announced that the government has finished drafting legislation for a licensing system for crypto asset service providers.
Chan Mo-Po commented that as the virtual asset exchange market continues to grow, Hong Kong has become a hub for high-quality virtual asset companies. The government aims to regulate the market in order to realize the potential of technologies like Web 3.0 and prevent risks to financial stability, investor protection, and improper funding activities.
According to him, the system requires relevant exchanges to meet anti-money laundering, anti-terrorist financing, and investor protection standards similar to those that traditional financial institutions must follow. It is expected to give crypto exchanges a greater level of legitimacy in the market.
He further stated that the government and regulatory agencies are conducting pilot projects to evaluate the technical benefits of virtual assets and examine related applications:
He revealed that the green bonds to be issued by the government will be tokenized for subscription by institutional investors.
Moreover, Chen Haolian, the Deputy Secretary for Financial Affairs and Treasury attended the same event and noted that the Securities Regulatory Commission is actively creating guidelines for crypto asset exchanges, intending to launch a public consultation by the start of this year.
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