Hong Kong’s SFC Backs Tokenisation, Prioritizes Investor Protection and Cybersecurity

Hong Kong’s Securities and Futures Commission (SFC) has voiced its support for tokenisation in the financial industry, aiming to enhance access to cryptocurrency investments while ensuring investor protection. The SFC intends to extend its regulatory oversight and code of conduct to fund managers investing in virtual assets. Elizabeth Wong, head of the SFC’s financial technology department, highlighted the potential of blockchain technology for improved efficiency. The SFC is actively exploring the benefits of tokenisation while prioritizing cybersecurity to safeguard against hacking and vulnerabilities. Brit Blakeney, a senior vice-president at Franklin Templeton Investments, echoed the sentiment, emphasizing the untapped potential of blockchain and tokenisation, with the asset manager focusing on digital assets and expanding its presence in the field.