Today the Hong Kong Monetary Authority (HKMA) wrote to Authorized Institutions (AIs) about their tokenization activities. It mainly focused on non-securities related activities, so it excluded tokenization that would be regulated by the Securities and Futures Commission (SFC). Examples include structured products that are not securities or tokenized commodities. It also issued a guidance note on digital asset custody.
Where there are already regulations covering the conventional form of investment, such as the two examples above, institutions must follow those rules, particularly concerning consumer protection.
Hong Kong also has a law similar to the United States – if tokenization fractionalizes an asset, it might be a collective investment scheme.
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