Hong Kong will launch the world’s first token green bond by 2022

Hong Kong will soon issue its first ever green tokenized government bond. In fact, reports indicate that Hong Kong will legalize cryptocurrency trading.

Hong Kong financial authorities have issued a statement regarding their commitment to better regulate the cryptocurrency sector. The finance minister also revealed several testing programs in the official announcement. Most notably, the issuance of a new batch of green tokenized bonds to institutional investors.

according to AttentionAt the end of the year, green government bonds will be issued. As a result, it will be the first ever green government bond to be tokenized.

Hong Kong on crypto regulations

Finance Minister Paul Chan Moo Bo said financial authorities are keen to use decentralized technology. He said,

“We must take full advantage of the potential offered by innovative technologies, but we must also be careful to protect ourselves from market fluctuations and the potential risks they can cause, to prevent risks and impacts from being transferred to the real economy.”

The ad mentioned a digital Hong Kong dollar and referred to a central bank digital currency (CBDC). How it can serve as the “backbone” and the pillar linking legal tender and virtual assets” will be the main subject of the investigation. In addition, the Hong Kong Monetary Authority revealed the results of a follow-up consultation on stablecoin regulations.

Along with a plan to allow cryptocurrency trading, Hong Kong wants to improve regulatory oversight for crypto firms. according to SourcesThe “Planned Compulsory Licensing Program for Crypto Platforms” could become a reality in March.

In fact, the regulators allow a list of major tokens but will not support any particular cryptocurrencies. The goal of the whole process is to revive interest in Hong Kong as a global financial centre. It appears that a large part of the policy will also include compulsory licensing.

A blockchain that can only be seen by authorized users of the blockchain is called “permissive” and will be used by Swiss digital asset firm and its Hong Kong partner, GFT Technologies Hong Kong. Blockchains will be implemented without permission by the Liberty Consortium.

FTX collapse effect

Linked to the market turmoil caused by the stunning crash of FTX and the announcement of a new political focus. The new trend has only encouraged regulators to tighten control over cryptocurrency operations, and Hong Kong is no exception.

It is worth noting here that according to the announcement, this is the first green finance project that the BIS Innovation Hub has started.

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