By the end of the year, the financial regulators in Hong Kong said they will issue the first tokenized green government bonds ever. Furthermore, according to Bloomberg, Hong Kong intends to authorize retail cryptocurrency trading.
Hong Kong will issue the first tokenized government green bonds ever by the end of the year. The region will reportedly legalize retail cryptocurrency trading, according to reports.
The financial authorities have released a statement on their commitment to properly regulating the cryptocurrency sector. The finance secretary also disclosed a number of trial initiatives in the official notification. The release of a fresh batch of tokenized green energy was the most famous of them.
According to the notice, the issuance of government green bonds will begin by year’s end. As a result, it would be the first government green bond ever to be tokenized. Financial Secretary Paul Chan Mo-Po stated that they must fully utilize the possibilities provided by cutting-edge technologies. Financial authorities are also interested in utilizing decentralized technology.
The announcement mentioned a digital Hong Kong dollar and referred to a central bank digital currency (CBDC). How it may act as “the ‘backbone’ and pillar linking legal tender and virtual assets” would be the main topic of the investigation. In addition, Hong Kong’s Monetary Authority disclosed the results of a follow-up consultation on stablecoin regulation.
Hong Kong Allegedly Looking to Legalize Retail Crypto Trading
Along with a plan to allow cryptocurrency trading, Hong Kong wants to improve the regulatory oversight of the crypto business. According to sources cited by Bloomberg, “a planned mandatory licensing program for crypto platforms” may become a reality by March.
According to the sources, regulators will allow a list of larger tokens but won’t support any particular cryptocurrency. The goal of the entire operation is to reignite interest in the Asian region as a global financial center. It appears that a significant component of the scheme will also include obligatory licensing.