The first-ever tokenized government green bonds will be released in Hong Kong soon. Indeed, according to the report, Hong Kong will probably likely permit small-scale cryptocurrency trading.
Moreover, financial regulators in Hong Kong have issued a statement outlining their commitment to stricter cryptocurrency regulation. In the formal announcement, the finance secretary also revealed a number of testing initiatives. The most notable of these is the introduction of a brand-new batch of tokenized green bonds for institutional investors.
The announcement states that government green bond issuing would start by year’s end. It would be the first-ever government green bond to be tokenized.
Therefore, Financial authorities are ready to make use of decentralized technologies, according to Financial Secretary Paul Chan Mo-Po. He stated:
We need to take full advantage of the potential offered by innovative technologies, but we also need to be careful to guard against market volatility and potential risks they may cause to prevent transmission of the risks and impacts to the real economy.
Hong Kong’s Perspective On Crypto Legislation
The statement referred to a central bank digital currency and the digital Hong Kong dollar (CBDC). The focus of the inquiry would be on how it may serve as “the ‘backbone’ and pillar linking legal tender and virtual assets.” In addition, the Monetary Authority of Hong Kong released the findings of a further consultation on stablecoin rules.
Hong Kong intends to strengthen the regulatory control of cryptocurrency enterprises and its intention to permit cryptocurrency trading. As per the insiders, a “proposed mandatory licensing scheme for crypto-platforms” may materialize by March.
Related Reading | China Is A Silent ‘Crypto Whale’ And Could Wipe Out The Entire Crypto Market
In reality, regulators won’t support any specific cryptocurrency but instead permit a list of more significant coins. The endeavor is intended to rekindle interest in Hong Kong as a central financial hub, and it looks like mandatory licensing will also be a crucial part of the approach.
The Swiss business Digital Asset and its Hong Kong partner, GFT Technologies Hong Kong, will deploy “permissioned” blockchains, which are only accessible to approved users. The Liberty Consortium will implement unauthorized blockchains.