Hong Kong is proposing to allow cryptocurrency retail, a measure that will help the city regain its status as a fintech hub.

The Hong Kong government has proposed allowing retail investors to trade cryptocurrencies and funds traded on the cryptocurrency exchange. The authorities will launch a consultation process on the possibility of giving retail investors “an appropriate degree of access” to virtual assets, financial secretary Paul Chan said in a keynote speech broadcast at the Hong Kong conference Fintech Week

The government will also examine the ownership rights of symbolic assets and study the possibility of legalizing so-called smart contracts. These measures are likely to pave the way for security token offerings (STO) in real estate, industry players said. STOs are blockchain-based tokens that represent property interests or entitle to income or dividends generated by real assets.