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The HK Crypto license allows trading of cryptocurrencies and STOs
Blockchain technology has reshaped traditional finance in recent years, enabling the securitization of assets through virtual tokens in Hong Kong. This innovation integrates the issuance, custody and settlement of securities such as stocks and bonds with the programming of smart contracts, all governed by existing securities laws.
This approach has popularized Securities Token Offerings (STOs) as a preferred method for companies to raise funds according to local news reports relationships.
Lu Tingkuang, co-founder and chief strategy officer of HKbitEX, said that “Hong Kong’s crypto-asset license can provide trading in both cryptocurrencies and security tokens (STOs).”
Hong Kong stands out in the global market with its cryptocurrency license that allows trading in both cryptocurrencies and security tokens (STOs). This dual capability outshines jurisdictions like Singapore and the United States, where licenses typically only cover one service, such as cryptocurrency transactions for Coinbase in the United States.
Despite Hong Kong’s cautious approach to the virtual asset market in the past, recent developments underscore its strategic advantages.
For example, Hong Kong made headlines last year by successfully issuing an HK$800 million tokenized green bond under the government’s Green Bond program, marking a pioneering move in global finance.
Building on this success, additional digital green bonds totaling approximately HK$6 billion were issued earlier this year, attracting a wide range of institutional investors globally.
The trend extends beyond government bonds. Taiji Capital has introduced real estate fund security tokens, revolutionizing real estate financing for professional investors.
Similarly, GF Securities (Hong Kong) launched tokenized securities linked to short-term commercial bills, further expanding the reach of digital finance.
The recent stance of the China Securities Regulatory Commission suggests a potential opening of STO investments to Hong Kong retail investors, aiming to attract more capital and fintech expertise to the region.
These developments highlight Hong Kong’s evolving role as a global leader in blockchain-based financial innovation, setting a precedent for integrating digital assets with traditional finance under strong regulatory oversight.
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