SFC outlines its expectations on tokenised products and services

The Securities and Futures Commission has issued two circulars that set out the requirements for intermediaries that conduct activities related to tokenised securities and investment products, respectively.

Tokenisation of securities and investment products is a key step in the path to greater digitalisation of financial products. These circulars therefore are a welcome development as they provide more clarity on the expected standards that should be followed in Hong Kong.

This flyer summarises the key updates included in the circulars including definitions, responsibilities regarding third-parties, disclosure requirements, and clarification on how the current regulatory regimes apply to tokenised securities and investment products.