What's new
Overview
This dossiers provides on overview of the direction of tokenization efforts including insights from major public-sector led project initiatives and jurisdictional pilots and sandboxes as well as the emerging regulatory framework for tokenization and key associated policy questions.
What's new
People's Bank of China and China Securities Regulatory Commission issue updated notice to curb virtual currency activity and real-world asset tokenization risks
The People's Bank of China, the China Securities Regulatory Commission, and other agencies updated the framework for managing risks associated with virtual currencies and tokenization of real-world assets, reiterating that virtual currency-related activities are illegal in China. The notice prohibits overseas entities from providing virtual currency services to domestic entities, mandates approvals for RMB-pegged stablecoins and RWA tokenization, and emphasizes central-local coordination for risk management and compliance.
Astana Financial Services Authority sets out 2026 AIFC regulatory development plan and previews possible reforms for 2027–2028
The Astana Financial Services Authority outlined its 2026 plans to refine the Astana International Financial Centre regulatory framework, focusing on asset management, FinTech, insurance, and Islamic finance, with further enhancements planned for 2027–2028. Public consultations and market feedback will guide developments, including updates to the Recognition Framework, Tokenisation Framework, and guidance on fitness and propriety.
US Securities and Exchange Commission chair outlines disclosure streamlining, foreign issuer rule review and joint Project Crypto work with the CFTC
SEC Chairman Paul S. Atkins outlined a policy agenda at AFME’s Annual Financial Services Policy Dinner to reduce regulatory friction in US capital markets, update the foreign issuer regime, and advance on-chain market infrastructure through "Project Crypto" with the Commodity Futures Trading Commission. The SEC aims to simplify disclosure requirements, refocus shareholder meetings, reform litigation, address international standard-setting challenges, and enhance cross-border regulatory cooperation.
European Central Bank Banking Supervision sets out 2026 supervisory priorities for AI governance, tokenisation and operational resilience
In a keynote speech, Patrick Montagner of European Central Bank Banking Supervision emphasized aligning digital transformation with governance and risk controls, particularly in AI and tokenisation. He highlighted AI-specific risk management shortcomings and concentration risks from non-EU providers, stressing the importance of the Digital Operational Resilience Act for unified incident reporting. The ECB plans to focus on generative AI, third-party dependencies, and operational resilience in 2026.
U.S. Securities and Exchange Commission staff issues statement outlining taxonomy and securities law considerations for tokenized securities
The U.S. SEC staff clarified that tokenized securities, despite being on crypto networks, remain subject to federal securities laws, including Securities Act registration. The statement outlines issuer and third-party tokenization models, emphasizing that tokenized security-based swaps require registration and must occur on a national securities exchange.
The Securities and Exchange Commission, Thailand launches public hearing on amendments to Tokenized Fund sale and redemption rules
The Securities and Exchange Commission, Thailand has initiated a public consultation on proposed amendments to regulations for the sale and redemption of mutual fund units in tokenized form, aiming to enhance transaction speed and regulatory clarity. The proposals include defining "Tokenized Fund," setting compliance standards, and allowing timeframe exemptions for adjusting investment units, with the consultation open until 11 February 2026.
Securities and Exchange Commission Ghana finalising a virtual asset regulatory sandbox ahead of opening VASP licensing applications
The Securities and Exchange Commission Ghana is finalizing a regulatory sandbox framework for Virtual Asset Service Providers under the Virtual Asset Service Providers Act, 2025, to test innovative virtual asset products and services. The sandbox aims to support investor protection and market integrity, with lessons from the pilot phase informing future policy and licensing frameworks.
U.S. Securities and Exchange Commission sets Trading and Markets priorities to build tokenized securities access, harmonize with the CFTC, support 24-by-7 equities and modernize legacy rules
The SEC’s Division of Trading and Markets, under Chairman Atkins, announced a three-year agenda to create a framework for tokenized securities, harmonize rules with the CFTC, support 24/7 equity markets, and modernize rules to enhance efficiency and reduce costs. Key initiatives include advancing rulemaking for tokenized securities, collaborating with self-regulatory organizations, and improving the Consolidated Audit Trail and National Market System.
U.S. Securities & Exchange Commission Commissioner Peirce spotlights municipal securities tokenization and urges modernization of recordkeeping rules
SEC Commissioner Hester M. Peirce emphasized tokenization as transformative for the municipal securities market, urging early SEC engagement on new technologies and advocating modernized recordkeeping. She cited benefits like atomic settlement and improved liquidity, referencing Quincy, Massachusetts’ 2024 tokenized offering, while cautioning against assuming widespread adoption due to market complexities.
Thailand Securities and Exchange Commission unveils 2026–2028 strategic plan focused on competitiveness, digital markets and sustainable finance
The Thailand Securities and Exchange Commission has released its 2026–2028 strategic plan, focusing on enhancing capital market competitiveness, digital and technology-led development, and sustainability. Key priorities include improving fundraising and corporate governance, advancing technology-enabled supervision, developing a digital capital market ecosystem, and aligning sustainability efforts with international standards.
Germany's Ministry of Finance agrees with France to implement the FIVE scale-up financing roadmap and sets up a joint digital finance taskforce
Germany's Ministry of Finance and France's Ministry for Economy and Finance agreed on a Franco-German roadmap to enhance late-stage growth capital for European scale-ups, linking this to broader EU capital market integration. Initiatives include connecting institutional investors with venture capital, backing the European Tech Champions Initiative 2.0, harmonizing stock option tax treatment, and exploring digital finance advancements, with a report due in the second half of 2026.
Prudential Regulation Authority sets 2026 supervisory priorities for UK deposit takers and plans wider shift to two-year periodic summary meeting cycles
The Prudential Regulation Authority has written to CEOs of PRA-regulated UK banks and building societies setting out its 2026 supervisory priorities, emphasising strategic risk management, operational and financial resilience, data risk, and support for innovation aligned with its secondary objectives on competition, international competitiveness and growth. Key expectations include enhanced oversight of changing risk profiles, implementation of updated significant risk transfer and model risk management standards, strengthened operational resilience and cyber preparedness, and preparation for Basel 3.1 and the Strong and Simple Framework. The PRA will also rebase variable Pillar 2 requirements in 2026 and continue modernising reporting and authorisation processes.
United Kingdom's Prudential Regulation Authority sets 2026 supervisory priorities for UK-active international banks and plans move to two-year PSM cycle
The Prudential Regulation Authority has written to chief executives of PRA-regulated international banks and designated investment firms in the UK setting out its 2026 supervisory priorities, emphasising risk management and governance, operational and financial resilience, and data risk, while adjusting supervision to support innovation and reduce regulatory burden. Key expectations include stronger counterparty credit and model risk management, prudent adoption of technologies such as artificial intelligence and distributed ledger technology, enhanced operational resilience and cyber capabilities, and preparations for Basel 3.1 and the Strong and Simple Framework. The PRA will also move remaining firms from annual to two-year Periodic Summary Meeting cycles in 2026 and is encouraging engagement on streamlined reporting and regulatory permissions ahead of capital regime changes.
South Korea Financial Services Commission announces National Assembly passage of amendments enabling security token issuance and circulation
South Korea's Financial Services Commission announced that the National Assembly approved amendments to establish a legal framework for tokenized securities on a blockchain-based ledger. Effective January 2027, the laws recognize distributed ledgers as securities registries and maintain security tokens within existing regulations. A consultative body will begin in February 2026 to address technology, infrastructure, and regulatory rules.
Securities and Exchange Board of India forms working group to develop 5-year and 10-year technology roadmap for market infrastructure institutions
The Securities and Exchange Board of India has established a Working Group to develop five-year and ten-year technology roadmaps for Market Infrastructure Institutions, addressing emerging technologies such as artificial intelligence, distributed ledger, and quantum-safe systems. The initiative, chaired by Dr. D.B. Phatak, aims to enhance market operations, surveillance, risk management, investor protection, and regulatory oversight.