Hong Kong upholds risk-based crypto rules amid tokenization push

Hong Kong's Paul Chan Outlines "Smart Regulation" Strategy

The Finance Secretary highlights tokenized green bonds, stablecoin licenses, and cross-border digital finance trials.

Speaking at a global forum in Switzerland, Paul Chan explained that Hong Kong follows the principle of “same activity, same risk, same regulation.” This ensures companies are regulated based on their activities rather than the technology (e.g., blockchain) used.

Key Tokenization Initiatives

Tokenized Green Bonds: $2.1 billion issued since 2023 to support green initiatives.
Stablecoin Licensing: Expected to launch within the next few months to protect users.
DART Concept: 40+ initiatives over 5 years to improve financial ecosystem efficiency.

Recent successful trials include a blockchain payment bridge between Hong Kong and Brazil, involving Chainlink and the HKMA, proving that tokenization can accelerate cross-border financial settlements.

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