TechFlow reports, on February 26, according to the Hong Kong Economic Times, Financial Secretary Paul Chan announced in the 2025-26 Budget that the Hong Kong government will soon release its second policy statement on virtual asset development. The statement will explore ways to integrate Hong Kong’s strengths in traditional financial services with technological innovations in the virtual asset sector, aiming to enhance the security and flexibility of real economic activities, while encouraging local and international enterprises to explore innovative applications of virtual asset technologies.
Chan reiterated that the government will consult on a licensing regime for over-the-counter trading and custody services of virtual assets within the year. Regarding stablecoin regulation, the government has already submitted a bill to the Legislative Council, and upon enactment, the Monetary Authority will begin processing license applications as soon as possible.
