By George Ward
The Financial Secretary of Hong Kong’s Financial Authorities, Paul Chang Mo-Po, stated in an official announcement that regulators are set to issue a new batch of tokenized green bonds for conventional investors. In addition, the Secretary revealed that Hong Kong is committed to reinstating firm regulations for the crypto market.
Also, it would publish a statement of policy concerning crypto products. The notice entailed details of other plans by the regulatory body.
It was revealed that the government’s green bonds would be launched for public release by the end of the year. Remarkably, the invention would be the first-ever tokenized government green bond worldwide.
In his recent comments, Paul Chang Mo-Po emphasized the need to indulge in the potential offerings of newer technologies intensely. Furthermore, he stressed the need to carefully thread against the market to curb volatility effects and potential risks.
As seen on the notice, Hong Kong’s national digital currency is still under consideration by its apex bank. The consideration period would allow a proper study of the currency’s purpose.
Its primary purpose is to serve as a robust support system and a foundation to connect legal tenders with digital assets. The monetary authority of Hong Kong had previously announced a full delve into its prior consultation regarding stablecoins.
Hong Kong Set To Legalize Retail Crypto Trading
Following Hong Kong’s announcement of reinstating crypto policies, it could only be in connection with the tragedy around the FTX exchange. The occurrence stimulates the emanation of new regulations guiding the crypto market.
Yat Siu, the co-founder chairman of Animoca, reveals his expectations in correlation with the FTX collapse. The Chairman opined that the exchange platform’s collapse had spurred the interest of regulatory bodies to reinstate rules and create a balance in the market.
The approval of retail trading and the launch of government-tokenized green bonds show Hong Kong’s keen interest in fully delving into the crypto space. Ultimately, this would lead to an active regulatory check and the legalization of crypto trading.
According to Bloomberg, Hong Kong’s plan for a compulsory licensing scheme for cryptocurrency platforms could be actualized by March. However, the report added that the regulatory framework would authorize the listing of approved tokens but will not include specific crypto products.