Hong Kong has reiterated its commitment to a “same activity, same risk, same regulation” approach for digital assets, signaling that innovation must advance alongside robust oversight. Speaking at a closed-door workshop during the World Economic Forum in Davos, Finance Secretary Paul Chan emphasized the need for clear regulatory guardrails as financial services and technology continue to converge.
Chan explained that the city’s framework ensures digital asset businesses are regulated based on the risks they pose, rather than the underlying technology they use. This principle aims to maintain financial stability, market integrity, and investor protection, while still allowing room for innovation. He stressed that digital assets should support the real economy, not undermine it through unchecked speculation or systemic risk.
Hong Kong has already implemented a licensing regime for virtual asset trading platforms, bringing crypto exchanges under formal supervision. Chan also confirmed that stablecoin licenses are expected to be issued in the first quarter, a move that could further integrate digital currencies into regulated financial markets.
In addition, the city has issued three batches of tokenized green bonds since 2023, totaling $2.1 billion, using blockchain to modernize conventional debt issuance for environmental projects.
Tokenization has emerged as a core pillar of Hong Kong’s digital asset strategy. The Hong Kong Monetary Authority’s Fintech 2030 roadmap prioritizes data, artificial intelligence, resilience, and tokenization through its DART framework, outlining more than 40 initiatives over the next five years.
Recent milestones include the onchain issuance of a $3.8 billion U.S. dollar money market fund and cross-border blockchain pilots linking Hong Kong with major global trading partners.
By applying consistent rules to comparable risks, Hong Kong is positioning itself as a jurisdiction where crypto innovation and regulatory discipline coexist, reinforcing its role as a leading global digital asset hub.
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.