PANews reported on April 20th that at the 2026 Hong Kong Web3 Carnival, Ye Zhiheng, Executive Director of the Intermediaries Division of the Hong Kong Securities and Futures Commission (SFC), stated that the short-term tasks for the next 12 months are divided into three clusters. First, achieving common goals through regulation. The SFC has completed the summary of the virtual asset trading and custody system and launched four sets of regulations (virtual asset trading, custody, management, and consultation) at once. The related draft is 260 pages long and was jointly completed by the Hong Kong Monetary Authority (HKMA), the Ministry of Justice, and the SFC. Further consultations are needed on regulatory guidelines, framework rules, and details. In addition, dynamic approaches to custody technology and insurance compensation arrangements will be studied, with strict requirements for virtual asset insurance.
Second, through product innovation. The China Securities Regulatory Commission (CSRC) will allow virtual asset trading platforms to trade tokenized funds, starting with a pilot program for money market funds. If the experience is positive, it will be expanded to all authorized products. Simultaneously, the CSRC is studying the architecture of perpetual contracts and how to integrate them into the regulatory framework, while also considering capital adequacy requirements. This afternoon, the CSRC will announce the world's first framework allowing virtual asset trading platforms to trade tokenized assets, not just tokenized money market funds, and will gradually expand to all authorized products.
Third, through interactive innovation. Collaborate with licensed participants to automate reporting and jointly manage custody risks, market conduct risks, and automated platform risks. Simultaneously, sign bilateral Memoranda of Understanding with international jurisdictions to avoid regulatory arbitrage and harmonize international practices.
