Ronald Leung’s original, dated commentary is reproduced below. Views, invitations and product references reflect the time of publication; they are not investment advice, an offer, a guarantee of return or confirmation of current availability.
Whether a gold token is a security has nothing to do with the token. Two definitions in Cap. 571 — written long before anyone tokenised anything — already settle it. Pool the public's money into a gold scheme and share out the returns, and Schedule 1, section 1(d) makes it a security regulated by the SFC. Price a paper certificate off the gold fix and cash-settle it, and section 1A(1)(a)(i) does the same. Both turn on what the holder receives — not whether it sits on a blockchain.
Disclosure: Esperanza operates a tokenised gold business. — Let's open the statute. A new breakdown every week.