Hong Kong will introduce sweeping reforms to strengthen its position as a global digital asset hub, Financial Secretary Paul Chan announced in his 2026-27 budget speech, outlining new licensing rules, stablecoin approvals and tokenization initiatives.
The government will introduce a bill this year establishing licensing regimes for digital asset trading platforms and custody providers, expanding the city’s regulatory scope beyond exchanges.
The move follows Hong Kong’s second political declaration on digital assets, which aims to create what officials describe as a “comprehensive regulatory framework” for innovation and investor protection.
Chan also confirmed that Hong Kong has implemented a licensing regime for issuers of fiat currency-referenced stablecoins, with the first batch of licenses expected to be issued next month. Officials said they would work with approved issuers to explore compliant and controlled-risk use cases, signaling a shift from policy design to real-world deployment.
The Securities and Futures Commission (SFC) will take additional steps to increase liquidity in the city’s digital asset market, especially for professional investors. The regulator plans to expand the range of products and services available and launch an acceleration program aimed at accelerating innovation within regulatory safeguards.
Tokenization is another key objective. The government will issue guidance clarifying that bondholder records can be maintained using distributed ledger technology, while exploring electronic signatures for bond issue documents and digitization of bearer bonds.
In parallel, Hong Kong will amend its Inland Revenue Ordinance to implement the OECD Crypto Asset Reporting Framework and the updated Common Reporting Standard over the next two years. The changes, expected to be billed in the first half of this year, aim to improve tax transparency and combat cross-border tax evasion.
Together, these measures constitute one of Hong Kong’s most comprehensive digital asset policies to date, reinforcing its ambition to compete with the world’s leading crypto financial centers.