By Nathan Ferguson
Chen Maobo, the Financial Secretary of Hong Kong stated that the authorities would release tokenized bonds to facilitate institutional investors. The government is also operating on a few factors related to the regulatory agenda. Hong Kong-based native media outlets reported to release of tokenized green bonds targeting organizational investors.
Government of Hong Kong to Release Tokenized Green Bonds for Organizational Investors
A few officials voiced the impending strategy dealing with technology, economy, and digital assets, along with focusing on the respective green bonds. Maobo stated that the authorities were operating on several pilot projects dealing with crypto assets. One such initiative was that the tokenized green bonds would be issued by the government and the institutional investors would be permitted to subscribe to them.
This is considered to be another move in the region’s progress related to decentralized technology’s pilot testing. The Financial Affairs and Treasury’s Deputy Secretary, Chen Haolian, additionally mentioned that the Securities Regulatory Commission in Hong Kong is making great endeavors for the regulation of the asset class. Particularly, it is now contemplating the specific rules to govern the exchanges.
It is additionally attempting to conduct open consultations for the announcement of its decisions. Recently, the government of Hong Kong accomplished legislative work to administer the licensing system, according to Maobo. The respective systems would deal with AML, investor protection, as well as anti-terrorist capabilities. Apart from that, the authorities are also forming a supervision mechanism for Web3. This has also been promoted before.
Hong Kong is paying a lot of attention to providing a favorable environment for the development of the Web3 sector within the jurisdiction. A venture accelerator stated that support for up to one thousand web3 ventures would be offered to it by the authorities. The officials are additionally making proactive moves while attempting to allure the firms as well as reinvigorate Hong Kong’s position as a hub for financial technology.
Another noteworthy advancement is related to Animoca Brands which is additionally pursuing to collect nearly $1 billion to fill its fund for metaverse and Web3 investment. In the words of Justin Sun, Hong Kong plays the role of the experiment base of China. Hong Kong is not the sole jurisdiction trying to regulate the crypto industry as well as elevating the Web3 world. Japan and South Korea are the other players who are boosting innovation in this sector.
In this way, the officials of both countries are enthusiastically attempting to develop policies that could assist in further crypto development. In the case of general regulation, Julia Leung – the upcoming head of the Securities and Futures Commission (SFC) of Hong Kong – proposed stringent regulation. Nonetheless, she does not intend to restrict innovation.
Regulators in Asia Become Active Due to Growing Crypto Scams
The reason behind the officials’ intent to enhance the regulation has become quite clear. Approximately 69% of the entirety of scams related to online investment in Hong Kong deal with crypto, as per an open broadcaster. A couple of weeks ago, two native men were detained by Hong Kong’s investigation bureau for commercial crimes.
They were arrested on suspicion of being engaged in a digital asset exploit on Atom Asset Exchange (AAX), as per a press conference conducted by the police. On the 23rd of December 2023, the men were detained for the charges related to deceiving the police officers. After that, they were accused of orchestrating fraud.