Over 12 Firms Interested in Security Token Offering: Hong Kong Gov’t

• Several Hong Kong agencies have pledged support for the fintech and the virtual assets industry.
• The Hong Kong government revealed that more than a dozen companies were interested in security token offerings.
• Previously, a Chinese court ruled that its people may continue to trade cryptocurrencies without using them as legal tender.

The government of Hong Kong on September 19 said that more than a dozen potential companies are interested in security token offerings, according to a local news agency.

The report noted that the Hong Kong Financial Services and Treasury Bureau (FSTB), Securities and Futures Commission (SFC), and HKInvest met with companies from the security token issuance industry and exchanged ideas on promoting Security Token Offerings (STOs) in the nation.

Chen Haolian, deputy director of the Treasury Bureau, pointed out that security token issuance was already live in Hong Kong. Haolian added that during last week’s meeting, more than a dozen potential token issuers were interested in security token issuance, emphasizing the government’s commitment to supporting Fintech.

The statement, as roughly translated, reads:

The SAR government supports the development of financial technology, to provide a wide range of innovative financial services to the society to support the development of the real economy, and to support the issuance of security tokens in compliance with the requirements of ensuring investor protection and responding to money laundering and terrorist financing.

Additionally, Huang Lexin, director of the Licensing Section of the Intermediary Department of the SFC, expressed the regulator’s support for the virtual asset industry, especially the application of distributed ledger technology to issue securities, which will help improve efficiency, transparency, and reduce costs.

Previously, Coin Edition reported that a Chinese court ruled that its people may continue to trade cryptocurrencies despite the nation’s ban on digital asset services.

According to the Beijing Number One Intermediate People’s Court, interested investors may only trade cryptocurrencies as virtual assets rather than legal currencies.