Hong Kong regulators plan to submit draft legislation for a comprehensive cryptocurrency regulatory framework in 2026, as the city steps up efforts to oversee digital assets and position itself as a financial innovation hub.
Christopher Hui, secretary for Financial Services and the Treasury, said authorities are working on a draft framework covering crypto-related services and have already started processing license applications for stablecoin issuers.
In prepared remarks to the Finance Committee of Hong Kong’s Legislative Council on Friday, Hui said the Financial Services and the Treasury Bureau and the Securities and Futures Commission plan to submit a draft ordinance regulating providers of crypto advisory services. He said regulators are currently consulting the public following the release of a digital asset consultation paper in December.
Hui also said the Hong Kong Monetary Authority has begun reviewing applications from stablecoin issuers and is working on how digital assets should be reported for tax purposes.
According to Hui, the government plans to introduce legislation this year to align with updated crypto-asset reporting rules from the Organisation for Economic Co-operation and Development. The goal is to begin automatically sharing tax information related to crypto transactions with other jurisdictions starting in 2028, as part of global efforts to combat cross-border tax evasion.
Hong Kong’s Stablecoin Ordinance, which took effect in August, requires stablecoin issuers to obtain licenses from the HKMA. As of Friday, no issuers were listed on the regulator’s public register, either for stablecoins issued in Hong Kong or those pegged to the Hong Kong dollar.
The Securities and Futures Commission currently licenses 11 crypto platforms to operate in Hong Kong. Senior officials, including Financial Secretary Paul Chan, have said the city aims to attract digital asset businesses while maintaining strong regulatory safeguards.
Hui’s comments came the same week U.S. lawmakers advanced a digital asset market structure bill, highlighting growing global momentum toward clearer cryptocurrency regulation.
Featured image from: x.com