Hong Kong’s Financial Secretary Chen Maobo said that the government would issue tokenized green bonds for institutional investors. It is also working on some aspects of a regulatory framework.
Local media outlets in Hong Kong report that the government plans to issue tokenized green bonds for institutional investors. Several officials spoke on the upcoming plans related to technology, digital assets, and the economy, among which was a focus on these green bonds.
Hong Kong Financial Secretary Chen Maobo said that the government was working on multiple pilot projects related to cryptocurrencies. One of these was that the government would issue tokenized green bonds that institutional investors could subscribe to. It’s another step forward for the region, which has focused heavily on pilot testing decentralized technology.
Chen Haolian, Deputy Secretary for Financial Affairs and the Treasury, also said that the Securities Regulatory Commission is working on regulating the asset class. Specifically, it is currently deliberating rules for exchanges and public consultations to inform its decisions.
The Hong Kong government recently completed legislative work for a licensing system, Maobo said. This system would focus on AML, anti-terrorist financing, and investor protection capabilities. Perhaps most importantly, the government is also establishing supervision for web3 — something it has touted before.
Hong Kong Increasing Focus on Web3
Hong Kong is very keen to have web3 flourish in its region. One startup accelerator said that it would offer 1,000 web3 startups support for its work. Officials are also actively trying to attract companies and reinvigorate its status as a financial hub.
Another notable development is that Animoca Brands is also looking to raise $1 billion for its web3 and metaverse investment fund. Justin Sun also said that Hong Kong serves as China’s “experiment base.”
Regulation in Asia Picking Up
Hong Kong is not alone in its crypto regulation push and is strongly focused on web3. Both South Korea and Japan are very keen on encouraging development in this space, and officials are actively creating related policies.
As for general regulation, Hong Kong’s next chief executive of the Securities and Futures Commission (SFC), Julia Leung, called for stricter regulation. However, she does not want to restrain innovation.
There’s a clear reason why officials want more regulation. 69% of all online investment scams in Hong Kong are related to crypto, according to a public broadcaster.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.