This circular outlines the requirements for tokenization of investment products authorized by the SFC in Hong Kong. The SFC is open to allowing primary dealing of tokenized SFC-authorized investment products, as long as the underlying product meets all applicable requirements and additional safeguards are in place. However, secondary trading of tokenized products requires more caution and consideration to ensure investor protection. Product providers must meet various requirements related to the tokenization arrangement, disclosure, intermediaries, staff competence, and prior consultation or approval with the SFC. The SFC may provide further guidance or impose additional requirements as the field evolves.
Learn with us in small steps