In terms of policy, the CSRC plans to open the door for Hong Kong retail investors to participate in the virtual asset market, including the introduction of listed virtual asset futures ETFs and the involvement of retail investors in securities token issuance (STO). BC Technology (0863), a listed company operating the virtual asset trading platform OSL in Hong Kong, expects that it will take about three to four months to see the securities industry upgrade the system and deploy to participate in the STO market for retail investors. With the opening of ETFs based on foreign products by the authorities, the Group expects that this is providing discussion space for the next step of developing ETFs based on Hong Kong virtual asset products.
Relevant people said that the CSRC's clear statement that individual investors are allowed to participate in the STO and virtual asset market this time is tantamount to a strong shot in the development of the industry. This will help retail investors not to participate in trading through unfamiliar platforms overseas, as in the past, and will certainly end the rise of non licensed trading platforms in Hong Kong or commonly known as "boat companies" in the early years.
BC Technology receives real estate token query
After the CSRC unveiled a new blueprint for the development of the virtual asset market last week, the relevant people acknowledged that "as soon as we saw it, we had been contacted by customers and institutions to understand the latest development, and several institutions had discussed the development of STO with us". Even if securities firms want to deploy and participate in STO development, together with improving the system and preparation, it is estimated that it will take 3 to 4 months at the earliest to achieve results. OSL will accordingly provide Hong Kong financial institutions with more short and medium line trading schemes to meet the new demand.
With the permission to use listed ETFs as a normal trading channel to participate in the virtual asset market, "this undoubtedly formally indicates that the authorities have made virtual assets available to retail investors, and at the same time, the industry can establish virtual asset trading platforms in Hong Kong that connect different industries and local customers, and connect securities firms, banks and different financial institutions, which will benefit the short - and medium-term development of the industry". In response to the launch of ETFs linked to foreign virtual asset futures, it is expected to provide space for the development of non exchange recognized funds in the future, and even virtual assets supported by Hong Kong as the underlying ETF issuance.
Said that the supporting issuance mechanism was in place to be clarified
In addition, in terms of promoting the development of token, OSL will work with peers to promote the token of bonds and funds. As for the government's plan to develop green bond tokenization, no matter the issuance mechanism, compliance support and process have been put in place, it is only up to the government to clarify whether to issue to retail investors in the future, or to conduct small-scale issuance first.
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