The Hong Kong Securities and Futures Commission (SFC) has stated that tokenized real-world asset (RWA) products are currently unsuitable for stock trading. Ye Zhiheng, executive director of the SFC's intermediary agency department, highlighted that RWA accounts for less than 1% of global digital asset management and its transaction volume is even lower. He noted that the latency of blockchain technology does not offer advantages over traditional trading systems, making it difficult to integrate with high-frequency trading.
Ye also mentioned that the SFC's Intermediary Institutions Department, which includes about 300 staff members, has 50 employees focused on virtual asset supervision, covering areas such as licensing and anti-money laundering (AML). The department plans to hire external personnel to enhance efficiency.
Hong Kong SFC: RWA Tokenized Products Unsuitable for Stock Trading
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