Hong Kong Regulatory New Moves: Tokenized Funds to Launch on Virtual Asset Platforms, Choi Fung-yu Reveals Multiple System Optimization Plans

The Hong Kong Securities and Futures Commission (SFC) is accelerating the development of a regulatory framework for the virtual asset market. According to the latest reports, Choi Fung-yu, Executive Director of the Investment Products Department of the SFC, disclosed a series of notable regulatory measures, with the most attention-grabbing being the upcoming trading of tokenized funds on Virtual Asset Trading Platforms (VATPs).

## Tokenized Funds Tap into Virtual Asset Platforms

Choi Fung-yu pointed out that the SFC is promoting traditional funds to be traded in tokenized form on virtual asset trading platforms. This move means that investors will not only access fund products through traditional channels but also have new options to trade within the virtual asset ecosystem. However, this innovative approach also introduces new risk challenges.

## Secondary Market Trading Still Requires Risk Control Mechanisms

According to Choi Fung-yu, trading of tokenized funds in the secondary market involves more complex risk management requirements. The SFC is working closely with fund companies, virtual asset trading platforms, and other institutions to explore establishing appropriate risk control measures to ensure the market operates smoothly. Although this process takes time, it is progressing step by step.

## Stamp Duty Policy Adjustment Brings Key Breakthrough

It is worth noting that the Hong Kong authorities recently clarified the stamp duty arrangements for secondary trading of tokenized funds. Choi Fung-yu believes that this policy adjustment will serve as an important catalyst for the development of the secondary market and help attract more institutional and individual investors.

## HKEX Fund Platform to Upgrade Features

Meanwhile, the Hong Kong Exchanges and Clearing Limited (HKEX) fund trading platform is also expanding its functionalities. Choi Fung-yu stated that the platform will add payment and settlement features to further improve the trading experience for investors. These infrastructure improvements will pave the way for the wider adoption of tokenized funds.

As Asia’s financial hub, Hong Kong’s innovative exploration in combining virtual asset regulation with traditional finance is worth关注. Choi Fung-yu’s series of policy previews reflect the SFC’s systematic efforts to build a trading ecosystem for tokenized assets.