Hong Kong High Court issues first tokenization injunction, setting a precedent for handling virtual assets in the local area

Odaily reports that the Hong Kong High Court approved the issuance of "token injunction orders" through blockchain technology to two virtual asset wallet addresses suspected of fraud last month. After the "token injunction order" is served, any person intending to transact with the virtual asset wallets involved in the case will see the injunction order stored on the blockchain. Edward Yau, Secretary for Financial Services and the Treasury, said in a social media post that Hong Kong is actively building a fintech innovation ecosystem, and the issuance of injunction orders through blockchain technology provides a practical solution for handling legal matters in the virtual asset sector, setting an important precedent for Hong Kong to handle similar cases in the future. Yau said that as an international financial center, Hong Kong's use of innovative technology to handle legal matters can enhance the legal protection for participants in the virtual asset market. The government has already introduced a licensing regime for virtual asset service providers through amendments to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) to ensure virtual asset trading platforms comply with relevant anti-money laundering and counter-terrorist financing international standards, as well as to protect investors. In addition, the Financial Services and the Treasury Bureau submitted the Stablecoin Bill to the Legislative Council last year, empowering the Monetary Authority with the necessary regulatory, investigative and enforcement powers to address activities related to stablecoins, preparing for the potential development of fiat-backed stablecoins as a widely accepted payment medium.