Hong Kong is doubling down on crypto.
In his 2026–27 Budget speech, Financial Secretary Paul Chan announced a wide set of reforms aimed at turning the city into a leading global digital asset hub.
The message was clear: stronger rules, clearer licenses, and real-world use — not just policy talk.
New licensing rules coming
The government will introduce a bill this year to create official licensing systems for:
- Digital asset dealers
- Custodian service providers
This expands regulation beyond just crypto exchanges. Officials say the goal is to build a full framework that protects investors while still encouraging innovation.
The push follows Hong Kong’s second major digital asset policy statement, which lays out a more structured roadmap for the industry.
Stablecoin licenses start next month
Hong Kong has already created a licensing regime for fiat-backed stablecoin issuers.
Chan confirmed that the first batch of stablecoin licenses will be granted next month. That marks a shift from planning rules to actually putting them into action.
Authorities say they will work closely with approved issuers to test stablecoins in controlled, low-risk use cases.
Boosting liquidity and innovation
The Securities and Futures Commission (SFC) will take steps to deepen market liquidity, especially for professional investors.
Plans include:
- Expanding the range of digital asset products
- Allowing more services within regulated boundaries
- Launching an accelerator program to fast-track innovation
The goal is to grow the market — but keep it within clear regulatory guardrails.
Big push into tokenization
Tokenization is another major focus.
The government plans to clarify that bondholder registers can be maintained using distributed ledger technology. It’s also exploring:
- Electronic signatures for bond issuance
- Digital versions of bearer bonds
In short, Hong Kong wants traditional finance and blockchain to work together.
Stronger tax transparency
At the same time, the city will tighten reporting rules.
Hong Kong plans to update its tax laws to adopt the Organisation for Economic Co-operation and Development (OECD) Crypto-Asset Reporting Framework, along with updated global reporting standards.
A bill is expected in the first half of the year. The aim is to improve tax transparency and reduce cross-border tax evasion.
The bigger picture
Taken together, these reforms represent one of Hong Kong’s strongest digital asset pushes so far.
The city is clearly trying to position itself alongside other major crypto-friendly financial centers. By combining strict regulation, stablecoin approvals, tokenization efforts, and global tax standards, Hong Kong is sending a strong signal:
It wants to compete — and it wants to lead.
