Hong Kong is accelerating its digital asset strategy, with the first batch of stablecoin issuer licenses slated for release in March. The government also confirmed plans to introduce a new bill aimed at regulating digital asset dealers and custodians. These moves are part of Hong Kong's broader objective to become a global hub for digital asset innovation.
Financial Secretary Paul Chan announced in the 2026-27 Budget Speech that a licensing regime for digital asset dealing and custodian services will be established this year. The budget also highlighted efforts to enhance liquidity in the fiat-pegged stablecoin market, with the Securities and Futures Commission focusing on providing more products and services for investors.
Over the next two years, Hong Kong will amend its Inland Revenue Ordinance to align with the Crypto-Asset Reporting Framework and the modified Common Reporting Standard. This initiative, expected to be introduced via an amendment bill in the first half of this year, aims to prevent cross-border tax evasion involving crypto assets.
The budget also emphasizes the tokenization of traditional bond markets, allowing bonds to be issued on blockchain technology. The Hong Kong Monetary Authority's subsidiary, CMU OmniClear Holdings Limited, will launch a digital asset platform this year to support the issuance and settlement of digital bonds, with plans to expand coverage to other digital assets over time. This strategic expansion aims to bolster Hong Kong's institutional digital asset infrastructure.