Connect with us
Active Currencies 14795
Market Cap $2,487,037,106,341.80
Bitcoin Share 51.50%
24h Market Cap Change $1.71

Hong Kong to launch world’s first tokenized green bonds by 2022-end

2min Read
Hong Kong to launch world’s first tokenized green bonds by 2022-end

Share this article

Hong Kong will soon issue the first-ever tokenized government green bonds. In fact, reports suggest Hong Kong will also reportedly legalize retail cryptocurrency trading.

Hong Kong’s financial authorities have released a statement on their commitment to better regulating the cryptocurrency sector. The financial secretary also disclosed several trial programs in the official notice. The release of a fresh batch of tokenized green bonds for institutional investors is the most prominent of them.

According to the notification, the issuance of government green bonds will begin by the end of the year. As a result, it would be the first government green bond ever to be tokenized.

Hong Kong on crypto-regulations

Financial Secretary Paul Chan Mo-Po stated that financial authorities are eager to utilize decentralized technology. He said,

“We need to take full advantage of the potential offered by innovative technologies, but we also need to be careful to guard against market volatility and potential risks they may cause, to prevent transmission of the risks and impacts to the real economy.”

The announcement mentioned a digital Hong Kong dollar and referred to a central bank digital currency (CBDC). How it could act as “the ‘backbone’ and pillar connecting legal tender and virtual assets” would be the main topic of the investigation. Additionally, Hong Kong’s Monetary Authority disclosed the results of a follow-up consultation on stablecoin regulations.

Along with a plan to allow cryptocurrency trading, Hong Kong wants to improve the regulatory oversight of crypto-businesses. According to sources, “a planned required licensing program for crypto-platforms” may become a reality by March.

In fact, regulators will allow a list of larger tokens but won’t support any particular cryptocurrencies. The goal of the entire operation is to reignite interest in Hong Kong as a global financial center. It appears that a significant component of the policy will also include mandatory licensing.

Blockchains that may only be viewed by authorized users are referred to as “permissioned” blockchains and they will be used by the Swiss company Digital Asset and its Hong Kong partner, GFT Technologies Hong Kong. Blockchains without authorization will be implemented by the Liberty Consortium.

Impact of the FTX Collapse

The market turmoil caused by FTX’s stunning collapse and the declaration of a new policy focus is related. The new trend has only encouraged regulators to tighten their oversight of the cryptocurrency business and Hong Kong is no exception.

Here, it’s worth noting that according to the announcement, this is the first green finance project the BIS Innovation Hub has started.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.