Hong Kong SFC Completes the Regulatory Structure of Tokenised Securities
Key Takeaways:Conformity to Traditional FrameworksResponsibility and Risk ManagementEssential Due Diligence Services
The middlemen must go down to the nitty-gritty of technical due diligence, in investigating cybersecurity threats and the expected business continuity. In the case of public, permissionless blockchains, then additional security is required to prevent theft or hacking.
The regulator also refers to having utmost clarity on when a settlement is open-ended. Disclosure documents should explicitly indicate on-ledger moves, the last word or not, on that the off-chain records are still sovereign. That is not to lose the ownership tussle in case the network crashed or something else became rogue.
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