Key Takeaways
Christina Choi, Government Director of Funding Merchandise on the Securities and Futures Fee (SFC), spoke on the Bloomberg Purchase-Facet Discussion board Hong Kong 2023.
Choi emphasised the function of expertise, notably AI and blockchain, in remodeling the asset administration trade.
The SFC is engaged on tips for tokenization of SFC-authorized funding merchandise.
SFC’s Twin Position in Asset Administration
Christina Choi, Government Director of Funding Merchandise on the Securities and Futures Fee (SFC), addressed the Bloomberg Purchase-Facet Discussion board in Hong Kong on September 26, 2023. She outlined the SFC’s twin function: defending buyers and upholding market integrity, and strengthening Hong Kong’s place as a world asset administration hub. The SFC goals to steadiness regulation and innovation, guaranteeing that expertise developments like AI and blockchain will be built-in into the asset administration trade with out compromising market integrity.
Know-how’s Affect on Asset Administration
Choi highlighted the fast developments in expertise, particularly mentioning the miniaturization of chip expertise from 90 nanometres to simply three nanometres in twenty years. She linked these technological leaps to the potential for “tiny modifications” within the asset administration trade that would lead to important market improvement.
Tokenization of Retail Funding Merchandise
Probably the most notable factors in Choi’s speech was the dialogue on tokenization of SFC-authorized funding merchandise. Tokenization refers to using blockchain expertise to create digital tokens that characterize fractional possession in an funding product. Choi talked about that the SFC is presently engaged on detailed tips for tokenization, notably specializing in major dealing at this stage because of the nascent state of Digital Asset Buying and selling Platforms (VATPs) in Hong Kong.
Regulation Allows Innovation
Choi careworn that whereas innovation is essential, it have to be balanced with strong regulation to make sure sustainable improvement and investor safety. She cited historic examples just like the World Monetary Disaster of 2007-08 and the fallout of unregulated crypto platforms to emphasise the significance of regulation.
Closing Remarks
In her closing remarks, Choi drew an analogy between regulation and machine studying, stating that simply as “machine studying with out regularization” is problematic, so is “innovation with out regulation.”
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