Hong Kong Securities and Futures Commission: Considering allowing licensed virtual asset trading platforms to provide retail investors with secondary trading of tokenized securities

According to the Hong Kong Economic Journal, the Hong Kong Securities and Futures Commission (SFC) is considering allowing licensed virtual asset trading platforms (VATPs) to provide secondary trading services for tokenized securities to retail clients. The Deputy Director of the Intermediaries Division, Lo Hoi-sze, stated that the authorities are studying the relevant requirements, operational risks, and control measures, and are drafting a related circular.

Currently, Hong Kong retail investors can only subscribe to and redeem tokenized funds in the primary market. Lo Hoi-sze specifically mentioned that the authorities are concerned about local tokenized money market funds and hope to allow trading on licensed VATP platforms, having conducted preliminary consultations with the industry regarding the relevant requirements.

Lo Hoi-sze emphasized that from the SFC's perspective, tokenized securities are essentially the same as ordinary securities, with only a technological layer added, and therefore the regulatory principle of "same business, same risks, same rules" will apply.