Hong Kong’s financial secretary said the government is looking to launch tokenized green bonds for institutional investors, according to a report by a local news outlet. The city is also working on establishing a proper degree of virtual assets to release the full potential of Web3 and similar technologies.
Institutional Investors Will Be Able to Subscribe to Tokenized Green Bonds in Hong Kong
The Hong Kong government plans to issue tokenized green bonds for institutional investors, according to the city’s Financial Secretary, Chen Maobo. The move marks another effort by the Hong Kong government focused on exploring virtual assets and the burgeoning Web3 space.
Chen Haolian, Deputy Secretary for Financial Affairs and the Treasury, said Hong Kong regulators are working on a regulatory framework for the tokenized green bonds. More specifically, the securities watchdog is discussing regulations for exchanges and using public consultations to inform its decisions.
Additionally, Maobo said the Hong Kong government has recently completed the legislative part of establishing a licensing system for virtual asset service providers in the city. He said that the anti-money laundering, anti-terrorist financing, and investor protection requirements exchanges need to comply with are now consistent with the requirements traditional finance (TradFi) institutions have to meet, increasing the market recognition for digital asset exchanges.
Hong Kong Ramping Up Web3 Efforts amid Attempts to Restore “Financial Hub” Status
Maobo added the Hong Kong government is working to establish an appropriate degree of supervision for the virtual asset market that would not restrict the potential of Web3 and other technologies. The special administrative has a long-standing interest in Web3, which many describe as “the next iteration of the internet.”
The Hong Kong government said last year it sees substantial potential in Web3 and distributed ledger technology (DLT), and that it will attempt to establish a “facilitating environment” allowing sustainable development of these rapidly-growing sectors. Additionally, Hong Kong officials have also been exploring the use cases of central bank digital currencies (CBDCs), with the city’s central bank planning to launch a wholesale CBDC in the coming years.
One Hong Kong-based startup accelerator said it would back 1,000 startups developing Web3 technologies. More recently, leading blockchain and Web3 investor Animoca Labs said it plans to raise $1 billion for its Web3 and metaverse fund.
The moves come as Hong Kong strives to revive its ‘financial hub’ status after years of coronavirus crackdowns. Once seen as a premier financial center, the city has been plagued with rigorous anti-virus measures, anti-government protests, and national security laws imposed by China.
This article originally appeared on The Tokenist
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