Hong Kong Pitches Crypto Framework at Davos Forum

Hong Kong’s Financial Secretary Paul Chan Mo-po championed the city’s digital asset regulatory approach at the World Economic Forum in Davos. He described the framework as “responsible and sustainable” during a closed-door workshop on Tuesday.

Hong Kong’s digital asset vision on the global stage. Financial Secretary Paul Chan continued his engagements at the World Economic Forum Annual Meeting in Davos yesterday (Jan 20), joining Vice Premier of the State Council He Lifeng’s Special Address and connecting with senior… pic.twitter.com/Vz2MSMILF6

— BrandHongKong 香港亞洲國際都會 (@Brand_HK) January 21, 2026

Chan emphasized that finance and technology are “mutually reinforcing” but require a balanced approach. He stated that digital assets could enhance transparency, strengthen risk management, and allow capital to move more efficiently.

We view digital assets as a financial innovation that we should embrace proactively

Chan said.

He added that digital assets must serve the real economy while maintaining strong guardrails.

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

Hong Kong Stablecoin Licenses and Green Bonds Lead Push

Hong Kong expects to issue its first batch of stablecoin licenses in the first quarter of 2025. The milestone would cement the city’s position as a crypto-friendly jurisdiction in the Asia-Pacific region.

Since 2023, Hong Kong has issued three batches of tokenized green bonds worth a combined $2.1 billion. The city has also established a licensing regime for virtual asset trading platforms.

Last November, the Hong Kong Monetary Authority launched a controlled pilot program. The initiative facilitates real-value transactions using tokenized deposits and digital assets.

Meanwhile, the insurance regulator unveiled a groundbreaking proposal in early December. The Hong Kong Insurance Authority plans to allow insurers to invest in cryptocurrencies for the first time.

The framework would impose a 100 percent risk charge on crypto assets held by insurance companies. Stablecoin investments would face risk charges based on their pegged fiat currency.

Public consultation on the insurance proposal will run from February to April 2025. Legislative submissions will follow the consultation period, according to the regulatory timeline.

Tax Reporting Framework Targets 2028 Launch

The government launched a separate public consultation on December 9 regarding crypto-asset tax reporting. The initiative targets automatic exchange of tax information with international partners starting in 2028.

Legislative amendments will implement the Crypto-Asset Reporting Framework developed by the OECD. Hong Kong plans to complete these amendments within the coming year.

Secretary for Financial Services and the Treasury Christopher Hui emphasized the strategic importance of these moves. He stated they demonstrate Hong Kong’s commitment to international tax cooperation and combating cross-border tax evasion.

🇭🇰 Hong Kong

Government opens CARF consultation for automatic crypto tax data exchange by 2028, amended CRS implementation by 2029. Secretary Christopher Hui commits to international tax cooperation and cross-border evasion prevention. Public feedback accepted until Feb. 6,… pic.twitter.com/R0kiJ9Ia13

— CoinMarketCap (@CoinMarketCap) December 11, 2025

Following his workshop remarks, Chan met Oman’s minister of economy, Said Mohammed Al-Saqri, in Switzerland. The pair discussed ways to deepen cooperation in finance, trade, green transformation, and industrial development.

Chan pitched Hong Kong as a “superconnector” that could help Oman diversify from its oil-centric economy. He expressed support for stock exchanges and regulatory authorities to explore reciprocal cooperation.

The Financial Secretary suggested that dual or secondary listings could foster mutual development between jurisdictions. Financial market connectivity remained a key theme in the bilateral discussions.

This year’s Davos meeting runs under the theme “A Spirit of Dialogue” amid an increasingly fractured geopolitical environment. Panels focus on cooperation, growth, and innovation across various sectors.

About 3,000 leaders from politics, business, and the arts representing around 130 jurisdictions are attending. Chan is expected to leave Switzerland on Friday when the meeting concludes.

Hong Kong has made strengthening its role as a fintech hub a priority in recent years. The government and regulators position themselves as “market enablers” that lead by example in the digital asset space.