Tag:Blockchain

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SFC Circular on Intermediaries Engaging in Tokenized Securities Activities (Part 2)
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SFC Circular on Intermediaries Engaging in Tokenized Securities Activities (Part 1)
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Hong Kong Stock Exchange Launches a New Blockchain-Based, Real-Time Settlement Platform
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EU/Luxembourg Update: New Blockchain/ DLT Pilot Regime for Financial Instruments Becomes Effective on March 23
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AUSTRALIA: Treasury Releases Token Mapping Consultation Paper
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High-Level Summary: Solving Common Failures in NFT Licensing
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New York Legislators Address Crypto Head-On
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The NFT Explosion – What lawyers need to know
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Japan’s New Crypto Regulation – 2019 Amendments to Payment Services Act and Financial Instruments and Exchange Act of Japan
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International FinTech Watch: China Announced Positive Stance on Blockchain Technology

SFC Circular on Intermediaries Engaging in Tokenized Securities Activities (Part 2)

By: Jay Lee and Beatrice Wun

In our previous blog, we discussed the Hong Kong Securities and Futures Commission (SFC)’s position on the taxonomy of tokenized securities and digital securities, and whether tokenized securities will be regarded as “complex products”. In this blog, we explore the guidance set forth in the SFC’s circular on intermediaries engaging in tokenized securities-related activities (the Circular).

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SFC Circular on Intermediaries Engaging in Tokenized Securities Activities (Part 1)

By: Jay Lee and Beatrice Wun

On 2 November 2023, Hong Kong’s Securities and Futures Commission (SFC) issued a circular addressing the participation of intermediaries in tokenized securities-related activities (the Circular). The move was timely, as we are seeing a growing interest among financial institutions in tokenizing traditional financial instruments in global financial markets.

The Circular supersedes the SFC’s 2019 Statement on Security Token Offerings (2019 Statement) and clarifies the meaning of tokenized and digital securities.

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Hong Kong Stock Exchange Launches a New Blockchain-Based, Real-Time Settlement Platform

By Jay Lee and Beatrice Wun

Hong Kong Stock Exchange (HKEx) recently launched “HKEx Synapse” (Synapse), a new blockchain-based settlement platform to complement the existing post-trade infrastructure for Northbound Stock Connect. “Stock Connect” in Hong Kong refers to a market access program through which investors in Mainland China and Hong Kong can trade and settle shares listed on the other market via exchanges and clearing houses in the home market. “Northbound Stock Connect” refers to the market access program where investors in Hong Kong can have access to shares in Mainland China.

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EU/Luxembourg Update: New Blockchain/ DLT Pilot Regime for Financial Instruments Becomes Effective on March 23

By Dr. Jan Boeing and Maxime Barthez[1],

Luxembourg and the EU have taken an important step forward in the area of blockchain and Distributed Ledger Technology (“DLT”). With a view to removing regulatory hurdles to the issuance, trading and post-trading of many financial instruments for which an EU regulatory framework already exists (such as the regulation of transferable securities, units in collective investment undertakings and derivatives under MiFIR, MiFID II and CSDR[2]), the EU has put in place the DLT Pilot Regime through Regulation (EU) 2022/858 of 30 May 2022. The new DLT Pilot Regime applies (with certain limitations) to all (traditional) financial instruments within the meaning of MiFID II[3] that are issued, recorded, transferred and stored using blockchain or distributed ledger technology (“DLT Financial Instruments”).

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AUSTRALIA: Treasury Releases Token Mapping Consultation Paper

By Daniel Knight and Oliver Herrmann

New licensing requirements for crypto service providers are coming, following a series of consultations launched last week by Treasurer, Jim Chalmers. The Government approach focuses on strengthening enforcement, bolstering consumer protection and ultimately establishing a new licensing framework.

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High-Level Summary: Solving Common Failures in NFT Licensing

By Drew Hinkes, Elizabeth Thomsen, Josh Durham

As blockchain and nonfungible tokens (NFTs) are still new technologies, their legal infrastructure is still developing, creating potential vulnerabilities. Three such vulnerabilities were exposed in our previous article, available here. We have now issued a follow-up Alert that explores solutions to such licensing failures.  This blog is a high-level summary;  the full alert can be found here.

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New York Legislators Address Crypto Head-On

By Jeremy M. McLaughlin, Christian A. Zazzali, and Josh Durham

On Friday June 3, 2022, New York lawmakers passed two cryptocurrency bills, whose fate now lie in the hands of Gov. Kathy Hochul. Together, they would impose a moratorium on certain cryptocurrency mining operations and establish a cryptocurrency and blockchain task force. If successful, the mining ban would make New York the first state to enact such a moratorium.

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The NFT Explosion – What lawyers need to know

First there were CryptoKitties. Then came Digital art, CryptoPunks and NBA tokens. But when Beeple’s digital art piece sold at Christie’s for $69 million, the mania truly  began.  And as with any wave of media mania, also came the groundswell of negative media and hand-wringing about NFTs.   Of course, NFTs are not all evil nor are they a panacea for artists and musicians. If properly issued and positioned, they can provide a win-win for both artists and collectors.

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Japan’s New Crypto Regulation – 2019 Amendments to Payment Services Act and Financial Instruments and Exchange Act of Japan

By Tsuguhito Omagari and Yuki Sako

Japan will fundamentally change its crypto asset regulations effective in spring of 2020.

In May, 2019, the National Diet, the Japanese national legislature, passed an amendment bill to the Payment Services Act (the “PSA”) and the Financial Instruments and Exchange Act (the “FIEA”), which was promulgated on June 7, 2019 (the “2019 Amendment”).  The 2019 Amendment will become effective within one year from promulgation, following further rulemaking by the Japan Financial Services Agency (the “JFSA”) to implement the 2019 Amendment, which is anticipated sometime soon and includes public comment process.

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International FinTech Watch: China Announced Positive Stance on Blockchain Technology

By Jim Bulling and Wendy Li

On 24 October 2019, China President Xi Jinping expressed strong support for blockchain, which was depicted as “a core technology” to promote China’s industry innovation and digital economy development. In his speech, he also noted that blockchain technology has already been applied in a number of sectors like digital finance, internet of things, intelligent manufacturing and supply chain management, and that since China has a solid foundation of blockchain technology, it should seize the opportunity to build up blockchain industrial ecology and accelerate the integration of blockchain, AI, big data and other cutting edge technologies.

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