ME News reports: On April 20 (UTC+8), Foresight News reported live from the Hong Kong Web3 Festival, where Mr. Yip Chi-hang, Executive Director of the Intermediaries Division of the Securities and Futures Commission (SFC) of Hong Kong, delivered a speech. He stated, “In last year’s peer review, the Financial Stability Board (FSB) ranked Hong Kong’s digital asset regulatory framework among the highest levels globally. Over the past 12 months, the SFC has achieved six milestones: permitting platform staking and recognized fund staking; jointly launching and concluding a public consultation on the virtual asset trading and custody regime with the Financial Services and the Treasury Bureau (conclusion completed on December 24); introducing the Crypto Tag automated reporting initiative in the fourth quarter of last year (also reflected in Paragraph 104 of the Policy Address); launching a perpetual contracts framework in February this year to allow margin financing and associated market-making; and initiating a tender for a virtual asset accelerator program. Looking ahead to the next 12 months, the SFC’s work will be organized into three key clusters: First, innovative regulation. The SFC has adopted a ‘buy two, get two free’ approach by simultaneously developing regulatory frameworks for virtual asset trading, custody, management, and advisory services; last week, we received a draft regulation spanning 260 pages. We will also advance custody technologies and insurance compensation mechanisms in a dynamic manner. Second, product-level practical innovation. This afternoon, the SFC will announce a new initiative: we will permit virtual asset platforms to trade tokenized funds—not merely tokenized assets. To our knowledge, this will be the world’s first predictable framework allowing trading of tokenized recognized funds on regulated platforms, beginning with a pilot program for tokenized money market funds. Additionally, perpetual contracts structures, margin financing, and capital adequacy requirements will be included in upcoming consultations. Third, collaborative innovation. The SFC is partnering with licensed institutions through initiatives like Crypto Tag to automate reporting, and actively signing bilateral memoranda of understanding with multiple international jurisdictions to prevent regulatory arbitrage across borders.” (Source: Foresight News)
HK SFC to Allow Tokenized Fund Trading on Virtual Asset Platforms
KuCoinFlashShare
Summary
On April 20, 2026 (UTC+8), Edward Yip of the Hong Kong SFC announced a new initiative at the 2026 Hong Kong Web3 Carnival. The initiative will enable virtual asset platforms to trade tokenized funds, beginning with tokenized money market funds. This establishes the world’s first regulated framework for tokenized approved funds on regulated platforms. Initial trading activity is expected to spur increased interest in the sector.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.