Hong Kong, a Special Administrative Region of China, is working on the regulation of digital assets since 2019. According to the Director of Fintech in Hong Kong, Liang Hanjing, a bill draft is ready in this regard and the legislation for a Virtual Assets Services Provider to issue licenses will be completed in the first quarter of 2023. The respective bill will help Hong Kong in the issuance of security tokens.
Hong Kong Govt Engrossed in VASP Legislation
The Government of Hong Kong Special Administrative Region (HKSAR) is serious to legalize virtual assets and their issuance. Two high-level meetings have held on the 14th and 16th of September which were attended by the security token issuance industry. The meetings were presided over by Chen Ho Lian (Deputy Director of Financial Services and Treasury Bureau) and Huang Lexin (Head of Fintech Group). These meetings were arranged to provide an opportunity for the fintech industry leaders to communicate with the government and the regulatory authority.
Speaking to China Fund News, Liang Hanjing stated that the Hong Kong SAR is more interested in the issuance of real estate security tokens. By issuing real estate security tokens, it wants to liquidate the sector. As a result, more investors will come to trade properties and the sluggishness and the problem of liquidity will be solved. Furthermore, he stated that the cost of issuing real estate security tokens is far less than issuing real estate trust funds.
Liang Hanjing further summarized that there are four steps in this regard. First of all, we need a compliant trading platform, secondly, the platforms must have their products. Third, the platform must have the ability to advertise. According to him, Hong Kong already has these three elements and now it only requires improving the legislation for the issuance of VASP licenses. These licenses will lower the risk of money laundering and terror funding. Liang Hanjing is optimistic that the respected bill will be passed in the Legislative Council in early 2023.
Liang Hanjing About Fintech Development in Hong Kong
Replying to a question related to the interest of Hong Kong in Fintech, Hanjing said that the next then years are very important for the digital economy. The use of AI, Blockchain, Cloud, and data will be widespread. His government is supporting the growth of web3 with proper regulations and policies. To support his stance, he said that the government will officially present a policy declaration in Hong Kong Fintech week which is going to be held from the 31st of October.
Hong Kong Fintech week is an international event in which delegations from world fintech companies will gather to discuss cross-border opportunities. At this event, the President of the Shanghai Stock Exchange, Cai Jianchun, and the CEO of the FTX crypto exchange, Sam Bankman-Fried are expected. A total of 85 countries are gathering in this event with a total number of 20k attendees within the allotted five days.
