Hong Kong’s Monetary Providers License Permits Buying and selling of Crypto and STOs

• Lu Tingkuang thinks Hong Kong has a handy crypto licensing regime.
• Hong Kong’s crypto-asset license permits holders to supply providers for crypto and STOs.
• Tingkunag believes Hong Kong is cautious in approaching the digital belongings business.

The co-founder and chief technique officer of HKbitEX, Lu Tingkuang, thinks Hong Kong has a extra handy crypto licensing regime than locations like Singapore and the U.S. Based on Tingkuang, the Hong Kong crypto-asset license permits holders to supply buying and selling providers for each cryptocurrencies and safety tokens (STOs).

In the meantime, the FinTech professional highlighted that different nations’ regulators present licenses for just one, and never each classes of belongings. As an illustration, he cited the U.S.-listed Coinbase, whose license solely permits the buying and selling of crypto belongings. 

In his presentation, Tingkuang famous that most individuals suppose Hong Kong is conservative in growing its digital belongings market. Therefore, the departure of a number of crypto giants, who bought pissed off and moved away from the area. Contrarily, the HKbitEX chief technique officer believes Hong Kong is simply cautious in its method to the business. He famous regional regulators have been cautious earlier than deploying, confirming they’ve noticed constructive outcomes lately.

To elucidate his view, Tingkuang highlighted that in February final yr, practitioners bought HK$800 million in tokenized inexperienced bonds beneath the Authorities Inexperienced Bond Program (Inexperienced Bond Program), with a one-year time period and a yield of 4.05%. Based on him, that train set a worldwide report, because it was the primary tokenized inexperienced bond issued by any authorities.

In the meantime, Hong Kong bought inexperienced bonds valued at roughly HK$6 million. The federal government denominated the bought bonds in Hong Kong {dollars}, RMB, U.S. {dollars}, and euros, with subscriptions reducing throughout a variety of world institutional buyers.

Tingkuang noticed an acceleration in tokenized securities growth within the non-public market. He cited a number of examples, together with Taiji Capital, which launched the issuance of actual property fund securities tokens for “skilled buyers” final yr, bringing revolutionary adjustments to the financing mannequin of the true property business. Tingkuang additionally talked about the Chinese language securities agency GF Securities (Hong Kong), which efficiently issued tokenized securities associated to short-term industrial paper in January this yr.