Regulatory Alerts2024-02-20
Added · Updated
Sale and distribution of tokenised products
The Hong Kong Monetary Authority issued this circular to establish supervisory standards for authorized institutions selling and distributing tokenised products. It mandates that existing consumer protection and regulatory requirements for underlying assets apply to their tokenised forms, requiring rigorous due diligence on issuers, technology providers, and smart contracts. Institutions must implement robust risk management frameworks, ensure clear and accurate product disclosures, and adhere to specific custodial standards to mitigate unique technological and operational risks.