Hong Kong to ease digital asset rules, launch tokenisation pilot scheme

Core Viewpoint - Hong Kong is implementing regulatory changes and a tokenisation pilot scheme to enhance its position as a leading fintech and digital asset hub, aiming to attract more digital asset trading and investment [1][3]. Regulatory Changes - The Securities and Futures Commission (SFC) will allow licensed virtual asset trading platforms (VATP) to share global order books with overseas affiliates, moving away from the previous requirement to keep order books confined to Hong Kong [2]. - VATPs can now distribute virtual assets and Hong Kong-regulated stablecoins with less than a 12-month track record to professional investors, reducing the prior requirement of a minimum one-year track record [3]. Financial Sector Developments - The Hong Kong Monetary Authority (HKMA) is promoting digital transformation and tokenisation through its "Fintech 2030" roadmap, which emphasizes data, artificial intelligence, resilience, and tokenisation [4]. - HKMA plans to advance its sandbox Ensemble to facilitate real-value transactions in tokenised deposits and digital assets, starting with tokenised money market funds [5]. Investment Trends - Total spending on technological investments in Hong Kong is projected to exceed HK$100 billion (approximately $12.9 billion) annually over the next three years, indicating a strong momentum for digital transformation [6]. - The launch of tokenised Hong Kong-dollar and U.S. dollar money market funds reflects a global trend of digital-native capital seeking yield-generating investments [6][7].