TechFlow news: The Hong Kong Securities and Futures Commission (SFC) has issued a "Notice on Activities Relating to Tokenized Securities by Intermediaries," stating that it is now an appropriate time to provide further guidance on activities related to tokenized securities.
The notice emphasizes that intermediaries must have adequate manpower and professional expertise to conduct due diligence on tokenized securities and remain responsible for the overall operation of tokenization arrangements, even when relying on third-party vendors or service providers.
It also highlights considerations regarding custody arrangements, disclosure requirements for client awareness, and the assessment of the complexity of tokenized securities.
In addition, intermediaries are required to comply with applicable legal and regulatory requirements, provide necessary information to the SFC, and implement appropriate control measures in digital securities-related activities.
