Explore compliance with international regulatory standards in jurisdictions such as Hong Kong and align with existing regulations on asset tokenization and cryptocurrency
ArtStar RWA involves tokenization of significant-value physical assets, Decentralized Finance (DeFi), and cross-chain asset interaction systems, making legal and regulatory compliance critical. ArtStar RWA will explore alignment with the standards of regulators in major jurisdictions (such as Hong Kong and Singapore) and comply with existing regulations concerning asset tokenization, digital currency, and Decentralized Autonomous Organizations (DAO).
The ArtStar limited company legal entity is registered in Hong Kong. Hong Kong has long been a global financial center with a complex common-law-based legal system, making it an attractive jurisdiction for blockchain-based enterprises. Over the years, the Hong Kong government has established regulatory frameworks for cryptocurrency and blockchain technology.
The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) are the primary regulators of financial services, including activities related to cryptocurrency.
Hong Kong’s regulatory environment has not yet explicitly defined oversight for tokenized Real-World Assets (RWA). ArtStar will align with Hong Kong’s regulations concerning cryptocurrency exchanges, digital token issuance, and asset-backed tokenization. ArtStar will collaborate with legal counsel to optimize classification of ArtStar tokens and obtain exemptions for compliant operation where appropriate. ArtStar will liaise closely with relevant authorities to ensure its tokenization processes conform to applicable laws and register with financial regulators where necessary.
Cultural relics and artworks may involve complex intellectual property, including copyright, trademarks, and patents. Intellectual property related to physical RWA TOKEN and digital representations must be clearly defined and reflected in user agreements. Hong Kong has not fully defined how the law treats smart contracts; therefore, ArtStar will follow legal advice to ensure that agreements executed via smart contracts are recognized as enforceable under Hong Kong law.
As ArtStar targets global operations, it must comply with international regulations on digital assets, such as guidelines regarding virtual assets, and ensure continuous adherence to global anti–money laundering and data protection standards (e.g., the EU’s GDPR).