In 2026, Hong Kong's virtual assets will move from a "principle oriented" to an "execution oriented" approach

Previously, Hong Kong regulatory authorities built a regulatory framework for virtual assets with the core of "same activities, same risks, same supervision", and launched measures such as trading platform licensing and the "stablecoin regulations", achieving a leap from "no regulation" to "principle and framework". The core of this stage is to establish industry standards, set risk red lines, communicate and integrate details with the industry, accumulate experience, adhere to the bottom line of financial stability, and reserve space for innovation.

The core of the "execution oriented" transformation in 2026 is to achieve "rules to follow, rules to be followed, and rules to be strictly enforced", transforming principle requirements into concrete measures that can be implemented, and promoting the industry's transformation from "building frameworks" to "putting them into practice". Unlike the principle oriented approach that focuses on setting rules, the execution oriented approach emphasizes the implementation of rules, detailed control, and real-time risk management, clarifies the responsibilities of each party, strengthens law enforcement, and makes compliance the norm in the industry.

The issuance of stablecoin licenses is a core symbol of transformation, carrying the mission of compliance and market activation. The regulatory layout for stablecoins in Hong Kong has already been promoted. In May 2025, the Legislative Council passed the "Stablecoins Bill", which officially came into effect in August, establishing a fiat stablecoin licensing system that requires issuers to apply for licenses and comply with strict requirements such as reserve management and anti money laundering. After the regulatory transformation in 2026, the issuance of licenses has entered the substantive stage. Financial Secretary Paul Chan has clearly stated that stable coin licenses will be issued this year, marking the transition of regulation from "legislation" to "implementation".

1、 Stablecoin license: a benchmark for transformation and a core lever for compliance

As the core infrastructure of virtual assets, stablecoins connect traditional finance and digital asset markets, and their compliance is the key to building a compliant ecosystem in Hong Kong. The issuance of stablecoin licenses is not only a direct manifestation of transformation, but also will promote the high-quality development of the industry from multiple dimensions, injecting momentum into the creation of a compliance center in Hong Kong.

Firstly, improve the compliance chain and reduce industry risks. According to the Stablecoins Regulations, licensed issuers are required to strictly comply with requirements such as reserve management, customer asset segregation, redemption mechanisms, and anti money laundering. Strict standards will screen high-quality entities, eliminate high-risk participants, protect investor rights, and enhance industry credibility. The first batch of licenses will be strictly controlled in single digits, highlighting the principle of "quality first".

Secondly, attract high-quality global resources and activate market vitality. The "one-stop" licensing system in Hong Kong has a clear path and transparent rules, making it more competitive compared to multi head regulation in Europe and the United States. It also focuses on scenario applications and encourages stablecoin services for cross-border payments, on chain finance, and other real economy sectors. The issuance of licenses will attract global compliance agencies to gather and promote the integration of stablecoins with traditional finance and the real economy. At the same time, Hong Kong plans to promote the pilot of offshore RMB stablecoins and strengthen the position of RMB as an offshore center.

Thirdly, connect with global regulation and enhance international discourse power. The regulation of stablecoins in Hong Kong balances compliance and innovation, forming a rigorous and flexible model that is more forward-looking compared to the EU MiCA regulations. The orderly issuance of licenses will convey Hong Kong's compliance determination to the world, promote collaboration with global regulators, and enhance the global connectivity and influence of Hong Kong's virtual asset market through measures such as the "Global Order Book".

2、 Deepening Transformation: The Advanced Path from "Execution and Implementation" to "Global Benchmarking"

The regulatory transformation in 2026 is a comprehensive industry change, not a single license issuance. In addition to stablecoin licenses, Hong Kong has issued licenses to 11 trading platforms, and will strengthen regular supervision in the future, initiate legislative consultation on OTC and custody services, and build a closed-loop supervision of the entire chain of "issuance trading circulation custody".

At the same time, Hong Kong adheres to the principle of "balancing regulation and innovation", reserving space for innovation while strictly enforcing laws. The Hong Kong Monetary Authority plans to release RWA operation guidelines by 2025, promote tokenization of traditional asset chains, cultivate an innovative ecosystem that integrates traditional finance and blockchain, and safeguard the bottom line of financial security while stimulating industry vitality.