Hong Kong to Enact Major Crypto Regulation Reforms and Licensing in 2026-27

Hong Kong is set to solidify its role as a leader in digital finance with substantial updates to cryptocurrency licensing and stablecoin regulation as stated in the 2026-27 budget announcement. The Financial Secretary of Hong Kong, Paul Chan, has outlined plans to introduce a bill targeting the establishment of comprehensive licensing regimes for both digital asset service providers and stablecoin issuers. This move is part of a broader strategy to enhance the city's standing as an international digital asset hub, balancing innovation with robust investor protection. The first licenses for fiat-referenced stablecoin issuers are expected to be issued shortly, representing a significant step toward operationalizing Hong Kong's crypto strategy. Additionally, the region will focus on developing its tokenization market and adhering to international standards, such as the OECD’s Crypto-Asset Reporting Framework, to enhance tax transparency. These upcoming regulatory developments highlight Hong Kong's commitment to becoming a competitive force in the global digital assets market.