Hong Kong is widening its digital asset rulebook beyond exchanges. In his 2026-27 Budget speech, Financial Secretary Paul Chan said the government will introduce a bill this year to create licensing regimes for digital asset dealers and custodians, while also moving ahead with stablecoin approvals, tokenized bond work and new tax reporting measures.
Licensing push expands past exchanges
The proposed bill would bring digital asset dealing platforms and custody service providers into a formal licensing framework. That would extend Hong Kong’s regulatory perimeter beyond exchange supervision and follow the city’s second policy statement on digital assets, which sets out a broader framework centered on innovation and investor protection.
The message is clear. Hong Kong is no longer focusing only on trading venues. By pulling dealing and custody activities into the licensing structure, authorities are building a wider compliance system around core parts of the digital asset market.
Stablecoin framework moves into approvals
Chan also said Hong Kong has already implemented a licensing regime for issuers of fiat-referenced stablecoins, with the first batch of licenses due next month. Regulators said they will work with approved issuers to examine compliant and risk-controlled use cases.
That shifts the stablecoin agenda from policy design to actual rollout. Once the first licenses are granted, attention will move from rulemaking to how those products are used under the city’s supervisory framework.
SFC targets liquidity and product expansion
The Securities and Futures Commission plans additional steps to deepen liquidity in Hong Kong’s digital asset market, especially for professional investors. According to the budget outline, the regulator will broaden the range of products and services available and launch an accelerator program intended to speed up innovation within regulatory limits.
No detailed product list or timetable was included. Still, the direction is specific: expand market access for professional participants and create a structured path for new digital asset offerings to move through oversight more quickly.
Tokenized bonds and tax reporting on parallel tracks
Tokenization is another major part of the plan. The government will issue guidance clarifying that debenture holder registers can be maintained using distributed ledger technology. It will also examine electronic signatures for bond issuance documents and the digitalization of bearer bonds.
Tax rules are set to change as well. Over the next two years, Hong Kong will amend its Inland Revenue Ordinance to implement the OECD’s Crypto-Asset Reporting Framework and the updated Common Reporting Standard. A related bill is expected in the first half of this year, with the stated goal of improving tax transparency and tackling cross-border tax evasion.
The package spans trading, custody, stablecoins, tokenization and tax disclosure. It is one of Hong Kong’s broadest digital asset policy moves so far, and it puts the city’s ambition to compete with major global crypto centers into concrete regulatory steps.