Hong Kong Plans 2026 Introduction of Comprehensive Cryptocurrency Regulatory Draft
Hong Kong's financial leadership has announced plans to develop comprehensive digital asset regulations, while simultaneously moving forward with stablecoin issuer licensing procedures and implementing crypto taxation measures.
According to Christopher Hui, who serves as Hong Kong's Secretary for Financial Services and the Treasury, the city's financial oversight bodies are preparing to introduce a comprehensive draft framework governing digital assets during the course of 2026.
During remarks prepared for a policy briefing session held on Friday before Hong Kong Legislative Council's Finance Committee, Hui revealed that both the Financial Services and the Treasury Bureau alongside the Securities and Futures Commission are preparing to introduce a draft ordinance focused on regulatory oversight of entities providing advisory services in the cryptocurrency sector. The official further noted that these two regulatory bodies were engaged in public consultation following the publication of a consultation paper on digital assets that was released in December.
Furthermore, Hui indicated that the Hong Kong Monetary Authority (HKMA) has commenced the process of reviewing license applications submitted by stablecoin issuers and would tackle the matter of reporting digital assets for taxation purposes.
We will submit legislative proposals to the Legislative Council this year to implement the revisions to the OECD's crypto-asset reporting framework and common reporting standards, with the aim of automatically exchanging tax information related to crypto-asset transactions with other tax jurisdictions from 2028 onwards, in line with international efforts to combat cross-border tax evasion
Christopher Hui
Following its approval by the Legislative Council, the Stablecoin Ordinance became operational in August and established mandatory licensing requirements for stablecoin issuers through the HKMA. According to the financial authority's public register as of Friday, there were no licensed stablecoin issuers listed, whether for entities issuing a stablecoin within Hong Kong's jurisdiction or for those offering coins pegged to the Hong Kong dollar.
Data from the Securities and Futures Commission showed that as of Friday, a total of 11 cryptocurrency platforms had received licenses authorizing them to provide services to Hong Kong residents. Various government officials, including Paul Chan who serves as Financial Secretary, have been actively advocating for Hong Kong's transformation into a hub for financial innovation while ensuring appropriate regulatory safeguards are in place.
US efforts on comprehensive crypto bill underway
The comments from Hui regarding Hong Kong's efforts to enact comprehensive cryptocurrency legislation came during the same week that lawmakers in the United States serving on the Senate Agriculture Committee moved forward with a digital asset market structure bill. This proposed legislation is anticipated to provide clarity regarding the respective responsibilities that the nation's financial regulatory agencies, namely the Securities and Exchange Commission and Commodity Futures Trading Commission, will hold in their oversight of cryptocurrencies.