TechFlow news: On February 5, according to the Hong Kong Economic Journal, the Securities and Futures Commission (SFC) of Hong Kong is considering allowing licensed virtual asset trading platforms (VATPs) to provide secondary trading services for tokenized securities to retail investors. Ms. Ho-yee Law, Deputy Director of the Intermediaries Division at the SFC, stated that the regulator is studying relevant requirements, operational risks, and control measures, and is drafting a related circular.
Currently, Hong Kong retail investors can only subscribe to and redeem tokenized funds in the primary market. Ms. Law specifically noted the SFC’s focus on locally tokenized money market funds and its intention to permit their trading on licensed VATP platforms; preliminary consultations with the industry on related requirements have already been conducted.
Ms. Law emphasized that, from the SFC’s perspective, tokenized securities are fundamentally identical to conventional securities—only differing in their technological implementation—and therefore the regulatory principle of “same business, same risk, same rules” will apply.
