Hong Kong regulators are preparing to advance a comprehensive regulatory framework for digital assets, with plans to submit a draft bill to lawmakers in 2026. The move signals the city’s continued effort to position itself as a regulated hub for cryptocurrency activity while strengthening oversight, licensing, and tax compliance.
Draft Ordinance for Crypto Services
Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, said financial authorities are working toward a draft ordinance covering digital asset activities. The proposed framework is expected to focus on regulation of crypto advisory service providers and related market participants. Hui noted that regulators have already begun public consultations following the release of a digital asset consultation paper in December.
The framework is being developed jointly by the Financial Services and the Treasury Bureau and the Securities and Futures Commission, reflecting a coordinated approach to crypto oversight.
Stablecoin Licensing and Tax Reporting
Hui also confirmed that the Hong Kong Monetary Authority has started processing license applications for stablecoin issuers. This follows the implementation of the Stablecoin Ordinance, which came into force in August and requires issuers to obtain regulatory approval. As of now, no stablecoin issuers are listed as licensed under the regime.
In parallel, authorities are addressing the tax treatment of digital assets. Hong Kong plans to align with updated international standards by implementing revisions to the OECD’s crypto-asset reporting framework, enabling automatic exchange of crypto-related tax information with other jurisdictions from 2028.
Currently, 11 crypto platforms are licensed to operate in Hong Kong. Officials continue to emphasize innovation alongside regulatory safeguards, as global jurisdictions, including the United States, move toward clearer crypto legislation.
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.