Hong Kong SFC Issues New Tokenized Investment Product Rules for VATP Secondary Trading and Primary Subscriptions

Hong Kong’s Securities and Futures Commission (SFC) is bringing tokenized investment products into the full regulatory framework for licensed virtual asset trading platforms (VATPs). The initiative links primary-market subscriptions and redemptions with secondary-market trading. Starting with money market funds, it establishes investor-protection and market-operating standards for an eventual expansion to other SFC-authorized products.

In 2026, the SFC issued Circulars 26EC22 and 26EC23 on the same day, requiring product providers to retain ultimate responsibility for tokenization arrangements. The circulars separately clarify requirements for secondary-market trading on VATPs and for primary-market subscriptions and redemptions. The new framework also introduces market makers to support liquidity and is designed to expand gradually from money market funds to all authorized products.