Hong Kong Unveils Sweeping Crypto and Finance Reforms for 2026

Hong Kong officials outlined an ambitious regulatory agenda for digital assets and financial services at a Legislative Council briefing on January 30. Financial Services and Treasury Bureau Secretary Christopher Hui detailed plans to introduce multiple crypto-related bills within 2026. The announcements build on the city’s stablecoin licensing framework that took effect in August 2025.

Hong Kong has announced that the Stablecoin Ordinance has come into effect and is currently processing license applications. The regulatory framework for virtual asset trading, custody, advisory, and management services will be submitted to the Legislative Council this year, and…

— Wu Blockchain (@WuBlockchain) January 30, 2026

The briefing comes just nine days after Financial Secretary Paul Chan Mo-po promoted Hong Kong’s digital asset approach at the World Economic Forum in Davos. Chan described the framework as “responsible and sustainable” during a closed-door session on January 21.

Hong Kong’s Monetary Authority is currently processing applications under the Stablecoin Ordinance implemented last year. The city expects to issue its first batch of stablecoin licenses soon, cementing its position as a crypto-friendly jurisdiction in Asia-Pacific.

Hong Kong Expands Regulatory Framework for Virtual Assets

The FSTB and Securities and Futures Commission issued consultation conclusions in December 2025 on regulating virtual asset trading and custodian service providers. Officials are now finalizing details of the regulatory regime.

Additionally, regulators have consulted the public on establishing oversight for virtual asset advisory and management service providers. Hui confirmed the government targets introducing legislation covering all four service provider categories to the Legislative Council within 2026.

Hong Kong will also align with international tax transparency standards for crypto assets. Legislative proposals implementing the OECD’s Crypto-asset Reporting Framework will go before lawmakers this year.

The framework enables automatic exchange of tax information related to crypto transactions with other jurisdictions starting in 2028. This move supports global efforts to combat cross-border tax evasion involving digital assets.

Chan emphasized at Davos that digital assets could enhance transparency and strengthen risk management. He stated the city views digital assets as “a financial innovation that we should embrace proactively.”

The Financial Secretary highlighted Hong Kong’s guiding principle of “same activity, same risk, same regulation.” This approach aims to promote healthy development while addressing financial stability and investor protection concerns.

Gold Market and Commodity Trading Push

Beyond digital assets, Hong Kong is aggressively expanding its physical commodity infrastructure. The government aims to increase gold storage capacity by more than 2,000 tonnes within three years.

This initiative positions the city as a regional gold reserve hub. Officials signed a memorandum with the Shenzhen Local Monetary Administration to support gold refining cooperation.

Meanwhile, the FSTB signed a cooperation agreement with the Shanghai Gold Exchange at the Asian Financial Forum on January 27. Both parties will jointly work to expand China’s influence in international gold pricing.

HONG KONG Chief Executive John Lee stated that the Hong Kong Special Administrative Region Government has entered into a cooperation agreement with the Shanghai Gold Exchange (SGE) to launch a cross-border precious metals trading and clearing system.
The government aims to… pic.twitter.com/OCVUWiRER9

— Eric Yeung 👍🚀🌕 (@KingKong9888) January 26, 2026

For commodity trading, 15 London Metal Exchange-approved warehouses currently operate in Hong Kong. The government will support industry efforts to establish additional approved facilities.

Hui outlined multiple initiatives to strengthen Hong Kong’s position as a global financial hub. The “Technology Enterprise Hotline” will assist Mainland technology companies in raising capital through Hong Kong listings.

On asset management, legislative proposals enhancing preferential tax regimes for funds, single family offices, and carried interests are expected in the first half of 2026. Amendment bills covering REIT privatization and restructuring are also planned.

The Asian Infrastructure Investment Bank announced plans in November 2025 to establish a Hong Kong office. The government is providing necessary support for this development.

Hong Kong will host the Asia-Pacific Economic Cooperation Finance Ministers’ Meeting in October 2026. This marks the first time the city will convene this gathering of regional finance leaders.

The re-domiciliation mechanism launched in May 2025 has attracted strong interest. As of late January, 14 applications have been approved with nearly 20 more under review.