Hong Kong is strengthening its position as a global digital asset hub, unveiling major regulatory developments and citing growing momentum in stablecoin adoption. On June 18, the city’s Financial Secretary announced expanded support for blockchain innovation and clarified new regulatory pathways.
Banking Activity Surges in 2024
According to official data, local banks handled HK$17.2 billion (US$2.19 billion) in digital asset transaction volume in 2024. Additionally, HK$5.1 billion (US$649.7 million) in crypto assets were custodied by year’s end — signaling significant institutional engagement.
This increase highlights how deeply integrated crypto services are becoming in Hong Kong’s financial ecosystem.
10 Crypto Platforms Licensed, More Coming
To date, 10 crypto trading platforms have received full licenses from the Securities and Futures Commission (SFC), with 8 additional applications currently under review. The licensing process includes rigorous compliance standards around AML, KYC, custody, and investor protections.
Stablecoin Ordinance Takes Effect August 1
Hong Kong’s regulatory progress will see a major milestone this summer with the Stablecoin Licensing Ordinance coming into force on August 1. This new law requires stablecoin issuers to apply for licenses and comply with transparency, reserve, and audit requirements.
The framework enables stablecoins to be pegged to multiple fiat currencies, enhancing liquidity and cross-border appeal.
Government to Issue New Policy Statement
To keep pace with market evolution, the Hong Kong government is preparing a second policy statement on virtual assets, which will reflect developments in trading, custody, and compliance standards. This follows a growing interest in staking services for spot crypto ETFs, which will soon be permitted under the new rules.
Stablecoins at the Core of Market Expansion
Stablecoins are playing a central role in Hong Kong’s digital asset strategy, attracting interest from both traditional financial institutions and crypto-native firms. The new regulatory clarity positions the city to become a preferred destination for global stablecoin issuers.
With a clear legal path and support for innovation, Hong Kong aims to balance risk management with market openness.
Conclusion: Hong Kong Eyes Leadership in Web3 Finance
Backed by solid transaction volume and forward-looking regulations, Hong Kong is signaling serious commitment to digital asset adoption. As stablecoin licensing rolls out and new ETF services come online, the city is well on its way to becoming a leading global hub for blockchain-based finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss