Hong Kong to Release Second Policy Statement on Digital Asset Strategy
Financial Secretary Paul Chan recently announced that Hong Kong will soon issue a second policy statement on its digital asset strategy. This new statement, set to be released later this month, will focus on integrating financial services with innovation and expanding real-world application scenarios for digital assets.
At the 2025 Caixin Summer Summit, Chan confirmed that Hong Kong had already implemented licensing systems for digital asset trading platforms and stablecoins. The city is also in the process of advancing new regulations for custody and OTC services. The Securities and Futures Commission (SFC) is currently reviewing virtual asset derivatives for professional investors, starting with BTC and ETH Perpetuals.
In October 2022, Hong Kong released its first policy statement on the development of digital assets, covering the regulation of crypto exchanges and the approval of exchange-traded funds (ETFs). Chan believes that blockchain and Web3 technologies will drive the future growth of digital tech in Hong Kong.
Chan emphasized the importance of exploring digital finance in the real economy, stating that financial innovation is crucial for Hong Kong to establish itself as a financial powerhouse. He highlighted the potential of utilizing digital finance to support the development of the real economy, including in finance and cross-border financial services.
The convergence of Web3 and AI is unlocking new opportunities in finance, with decentralized AI algorithms enhancing credit assessments, auditing smart contracts, and delivering personalized investment strategies. This technology is not only transforming finance but also revolutionizing supply chains, healthcare data management, and gaming experiences.
The upcoming policy statement on virtual assets will focus on leveraging Web3 to accelerate the development of traditional financial services, empower the real economy, and enhance the application of digital asset technologies.
Hong Kong’s stablecoin law is set to take effect on August 1, paving the way for regulated issuance and positioning the city ahead of the U.S. and mainland China in terms of stablecoin regulations. This move will strengthen the city’s blockchain infrastructure for cross-border payments and financial innovation in Asia.
As the financial and technology sectors in Hong Kong gear up to embrace stablecoins, companies like Futu Securities International and Tiger Brokers are already exploring opportunities for growth and innovation in the brokerage industry. With stablecoins expected to enhance capital efficiency, flexibility in the market, and user experience in cross-border transactions, Hong Kong is poised to become a leading hub for digital asset innovation.