Hong Kong to implement comprehensive digital asset licensing by 2026

Hong Kong authorities have confirmed plans to introduce a comprehensive regulatory framework for digital assets by the end of 2026. Christopher Hui, Secretary for Financial Services and the Treasury, announced that the government will submit a legislative amendment bill covering four key business categories: digital asset exchanges, custody, advisory, and asset management services.

This move aims to transition Hong Kong from regulating individual trading platforms to a full-chain licensing system under the Securities and Futures Commission. While the new regulations are expected to increase compliance costs for firms, they are intended to provide legal clarity for traditional financial institutions to participate in the crypto market, particularly in the Real World Asset (RWA) sector.

In tandem with these legislative developments, the stablecoin market in Hong Kong is seeing active participation from major banks. Anchorpoint Financial, a joint venture involving Standard Chartered, has launched the HKDAP stablecoin for institutional use. Meanwhile, HSBC has announced its own stablecoin, ‘HSBC RedCoin’, which is slated for a 2026 launch focusing on peer-to-peer transfers and merchant payments via existing banking apps.