Hong Kong Lawmaker Proposes Establishment of Dedicated Digital Asset Department at SFC

A member of the Hong Kong Legislative Council has proposed nurturing Hong Kong as an international digital asset hub by 2032 and establishing an independent digital asset department within the Securities and Futures Commission (SFC). Lawmaker Chu Tak-kin included policies related to digital finance, Web3, and digital assets in his "3+3 Cooperative Development Blueprint" proposal. The proposal includes measures to create initial investment channels for Web3 finance and establish a "Hong Kong version of the Web3 Pink Sheet." Additionally, support for the tokenization of real assets (RWA) and the development of tokenized stocks was also suggested. Chu emphasized the need to enhance the efficiency of review and supervision by setting up an independent digital asset department within the SFC. He proposed expanding the use of virtual asset exchange-traded funds (ETFs) and Hong Kong dollar-pegged stablecoins, as well as building an integrated compliance infrastructure. Currently, the SFC supervises virtual asset trading platforms and fund managers and implemented a licensing system for virtual asset trading platforms in June 2023. The SFC plans to pilot a regulatory framework allowing trading of tokenized SFC-approved investment products in the secondary market by April 2026. The Hong Kong Monetary Authority (HKMA) oversees stablecoin issuers, and a licensing system for fiat-pegged stablecoin issuers will be implemented starting August 1, 2025. Whether Chu's proposal leads to actual institutional reforms depends on the Hong Kong government's policy adoption and legislative procedures.

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