Hong Kong Highlights Balanced Digital Asset Regulation at Davos

Hong Kong Finance Secretary Paul Chan, speaking at the World Economic Forum in Davos, defended the city's regulatory approach for digital assets, emphasizing the principle of "same activity, same risk, same regulation." This framework ensures digital asset businesses are regulated based on the risks of their activities, not the technology used, aiming to serve the real economy while building guardrails for financial stability and investor protection. Chan highlighted existing measures, including a licensing regime for virtual asset trading platforms and ongoing pilots for tokenized deposits. Furthermore, Hong Kong is preparing to issue stablecoin licenses in the first quarter and has already issued $2.1 billion in tokenized green bonds since 2023. The city is increasingly focusing on asset tokenization, exemplified by China Merchants Bank tokenizing a major money market fund and the Hong Kong Monetary Authority prioritizing tokenization in its Fintech 2030 strategy.

(Source：Cointelegraph)