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ARTICLE · 16 JANUARY 2024

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SFC Circular On Intermediaries Engaging In Tokenized Securities Activities (Part 2)

K&L Gates
K&L Gates
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In our previous blog, we discussed the Hong Kong Securities and Futures Commission (SFC)'s position on the taxonomy of tokenized securities and digital securities...

Hong KongTechnology
K&L Gates
K&L Gates

In our previous blog, we discussed the Hong Kong Securities and Futures Commission (SFC)'s position on the taxonomy of tokenized securities and digital securities, and whether tokenized securities will be regarded as "complex products". In this blog, we explore the guidance set forth in the SFC's circular on intermediaries engaging in tokenized securities-related activities (the Circular).

Responsibilities of Intermediaries

Intermediaries engaging in tokenized securities-related activities, such as (i) issuance of tokenized securities, or (ii) dealing in, advising on, or managing portfolios investing in tokenized securities, are expected to fulfill a number of regulatory expectations.

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