Ye Zhiheng: The Hong Kong Securities and Futures Commission will announce new measures this afternoon, allowing virtual asset trading platforms to trade tokenized funds.

ME News Report, April 20 (UTC+8), Hong Kong Securities and Futures Commission (SFC) Intermediaries Department Executive Director Ye Chi-hang delivered a speech at the 2026 Hong Kong Web3 Carnival, stating, "The Financial Stability Board (FSB) listed Hong Kong’s digital asset regulatory framework as ‘one of the highest levels’ in last year’s peer review. Over the past 12 months, the SFC has achieved six milestones: allowing platform staking and recognizing fund pledges; jointly launching and completing consultations on virtual asset trading and custody systems with the Financial Services and the Treasury Bureau (which concluded on December 24); launching the Crypto Tag automated reporting initiative in Q4 last year (also reflected in Paragraph 104 of the Policy Address); introducing a perpetual contract framework in February this year, permitting margin financing and related market makers; and initiating a virtual asset accelerator tender.

Looking ahead to the next 12 months, the SFC’s work will be divided into three major clusters: First, innovative regulation. The SFC will adopt a ‘buy two get two free’ approach, establishing four regulatory regimes for virtual asset trading, custody, management, and consulting in one go. Last week, a draft regulation of 260 pages was received. It will also dynamically advance custody technology and insurance compensation mechanisms;

Second, practical innovation at the product level. This afternoon, the SFC will announce a new initiative allowing virtual asset trading platforms to facilitate tokenized fund trading. This is not limited to tokenized trading; as far as we know, it is the world’s first expected framework for trading tokenized recognized funds on a regulated platform, starting with a pilot of tokenized money market funds. Additionally, the structure of perpetual contracts, margin financing, and capital adequacy requirements will be included in subsequent consultations;

Third, collaborative innovation. The SFC promotes declaration automation through initiatives like Crypto Tag in cooperation with licensed institutions, and actively signs bilateral memoranda of understanding with multiple international jurisdictions to prevent cross-border regulatory arbitrage." (Source: ME News)