The post This Country Advances Tokenization of Real World Assets appeared on BitcoinEthereumNews.com.

Hong Kong’s financial regulators, including the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC), are setting the stage for the growth of the tokenization of real-world assets (RWA) industry. Tokenization, which converts asset rights into digital tokens on a blockchain, promises to enhance transaction efficiency and transparency. Hong Kong to Regulate Tokenization of Real-World Assets Recently, the HKMA announced its intent to provide detailed guidance on tokenized products. This move aims to establish clear regulatory standards for the banking industry. Moreover, the Financial Services and the Treasury Bureau (FSTB) has unveiled fintech and tokenization initiatives. Key among these initiatives is the Integrated Fund Platform (IFP) and the promotion of applications related to the real economy by the virtual asset (VA) and Web3 sectors. Financial Secretary Paul Chan has stressed the significance of these initiatives. They aim to provide the public with more accessible, affordable, and inclusive financial services. “Empowering financial institutions to accelerate digitalization and product innovation, better serving the real economy, and providing members of the public with more convenient, less expensive, and inclusive financial services,” Chan said. Read more: What is The Impact of Real World Asset (RWA) Tokenization? Additionally, the SFC plans to issue circulars on tokenized securities and SFC-authorised investment products. This approach intends to make regulatory expectations clear and enhance investor protection. It may also extend regulations to include a wider range of virtual asset transactions. The SFC also shared a document detailing potential requirements for investment product tokenization. It emphasizes the need for responsible product management, accurate record-keeping, and robust cybersecurity risk management. Industry leaders like BlackRock’s Larry Fink are optimistic about the future of asset tokenization. Indeed, Fink envisions a future where all asset classes, including ETFs, are tokenized. This transformation could revolutionize asset management by enabling instant transactions…

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Filed under: News - @ February 20, 2024 9:22 pm