Hong Kong is reaffirming its goal to become a major global center for virtual assets with a second policy statement expected soon. According to Financial Secretary Paul Chan Mo-po, this statement will prioritize combining traditional finance strengths with new virtual asset technologies. The aim is to improve economic security and flexibility.
This move follows Hong Kong’s initial virtual asset policy statement from October 2022. That first statement set the stage for the city’s regulatory approach and crypto sector ambitions.
Local media reports indicate the upcoming policy declaration will encourage both domestic and international companies to explore fresh uses for virtual asset technology. The local government is clearly committed to developing a vibrant and well-regulated digital finance scene.
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Q2 Policy Statement
Sources suggest the new policy will be released in the second quarter of this year. It will place greater emphasis on balancing industry growth with regulatory oversight. In contrast to the less regulated approach from two and a half years ago, this next declaration will aim to build market confidence through solid regulatory frameworks.
“With regulation comes confidence, and with confidence, there is room for development,” a government source noted, emphasizing the importance of a structured approach to fostering growth in the virtual asset sector.
Hong Kong will also launch a new consultation process this year. This will assess licensing for over-the-counter (OTC) virtual asset transactions and custodian services.
Stablecoin Regulation and SFC’s ASPIRe Roadmap
Regulation for stablecoins is also progressing. The government introduced a framework late last year. Once these rules are approved, the Hong Kong Monetary Authority (HKMA) plans to speed up the licensing for stablecoin issuers.
In other news, Hong Kong’s Securities and Futures Commission (SFC) has presented a roadmap called “ASPIRe.” This initiative is designed to strengthen the city’s position as a global cryptocurrency hub.
Related: Hong Kong Eyes Bitcoin Reserves, Stablecoin Push in Web3 Drive
Announced on February 19, ASPIRe addresses issues like fragmented liquidity, regulatory arbitrage, and market volatility. It lays out a five-pillar strategy—Access, Safeguards, Products, Infrastructure, and Relationships—along with 12 key initiatives. These are aimed at improving blockchain efficiency, streamlining compliance, and expanding market access.
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