Hong Kong vigorously promotes the tokenization of traditional financial instruments, BiFinance’s advantages and future plans
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The Hong Kong cryptocurrency market has witnessed new developments that are driving the tokenization of traditional financial instruments.
According to Huang Lexin, Director of Intermediaries Supervision Department and Head of Fintech at the Securities and Futures Commission (SFC), tokenization will be a key focus during the upcoming Hong Kong Fintech Week from October 30th to November 5th. The SFC strongly supports the continued tokenization of traditional financial instruments and intends to propose ideas that enable the industry to continue experimenting within a clear regulatory environment.
On October 20th, 2023, the SFC released a joint circular on virtual asset-related activities by intermediaries. Under the updated guidelines, brokerages and banks holding Type 1 and Type 4 licenses can offer virtual asset and security token offering (STO) services to retail investors, expanding beyond the previous restriction that limited these services to compliant exchanges.
The circular also clarifies that digital asset custody can be conducted by traditional financial institutions such as banks. Furthermore, the SFC officially recognizes the legitimacy of security token offerings (similar to traditional stock IPOs). Licensed institutions can issue security tokens through STO after undergoing review by the SFC.
Background of BiFinance, an institutional-grade digital asset trading platform
BiFinance, an institutional-grade digital asset trading platform, has been dedicated to compliance since its establishment, distinguishing itself from other CEX platforms. Bob, spokesperson for BiFinance, shares, “Over 70% of our team
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