Hong Kong Proposes Amendments to Virtual Asset Licensing and Tokenization Regulations

Hong Kong is advancing efforts to refine the licensing system for virtual asset service providers and enhance regulatory frameworks for tokenized investment products. The government announced in its 2026 policy address released on the 16th that the Securities and Futures Commission will develop specific regulatory guidelines to clarify compliance pathways for virtual asset service providers. Regulations will also be improved to allow tokenized products backed by gold and other suitable physical assets to be issued and traded on authorized platforms. The Financial Services Development Council stated it aims to promote trading of regulated stablecoins on licensed virtual asset exchanges and the use of tokenized money market funds for payments.

The Hong Kong Monetary Authority plans to complete a central bank digital currency payment system with 24-hour operations by year-end, according to its announcement.