Hong Kong Regulators Embrace Blockchain with New Digital Asset Framework
The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) have outlined plans to integrate digital assets into the city's financial framework. The HKMA is upgrading its Central Moneymarkets Unit (CMU) settlement system to run on blockchain, allowing for round-the-clock real-time settlements.
The upgraded platform will handle a digital Hong Kong dollar and central bank digital currency (CBDC), with the HKMA also studying tokenized deposits and regulated stablecoins for direct settlement. The SFC is introducing new licensing rules for digital assets, including tokenized investment products that cover tokenized gold and other real-world assets.
The regulator aims to boost financial security by monitoring custody holdings and using a market-surveillance tool called CrypTech to catch suspicious activity. It also plans to tighten anti-money-laundering monitoring and use artificial intelligence in its oversight systems.