Hong Kong Plans to Introduce Digital Asset Regulatory Framework in 2026

TLDR

• Hong Kong’s financial regulators are preparing a draft bill for digital asset regulation, expected to be submitted in 2026.
• The draft bill will focus on regulating crypto advisory services and align with international standards for digital asset taxation.
• The Hong Kong Monetary Authority has started processing applications for stablecoin issuers under the new regulatory framework.
• Hong Kong aims to implement revisions to the OECD’s crypto-asset reporting framework, with tax information exchanges starting in 2028.
• The Stablecoin Ordinance, passed in August, requires stablecoin issuers to obtain licenses from the Hong Kong Monetary Authority.

Hong Kong’s financial regulators are set to submit a draft framework for regulating digital assets in 2026. This development comes as the government works on refining its approach to crypto and digital asset regulations. Hong Kong aims to establish a clear set of rules to manage the emerging sector while ensuring compliance with international standards.

Hong Kong’s Legislative Plans for Digital Asset Regulation

Hong Kong’s Financial Services and the Treasury Bureau, along with the Securities and Futures Commission (SFC), are preparing a draft bill. This legislation will address the regulatory framework for firms offering crypto advisory services. The regulators have been consulting with the public after releasing a consultation paper on digital assets in December.

The proposed draft bill, scheduled for submission to the Hong Kong Legislative Council in 2026, will define how the crypto advisory sector should operate. It will aim to provide a clear legal framework for firms offering advice related to cryptocurrencies, fostering industry growth while maintaining security and compliance.

The Hong Kong Monetary Authority (HKMA) has begun processing applications for stablecoin issuers. As part of this initiative, the HKMA has also set out plans to regulate the taxation of digital assets. Financial Secretary Paul Chan and other officials have been pushing for Hong Kong to become a leading hub for financial innovation in digital assets.

In August, the Legislative Council passed the Stablecoin Ordinance, which requires stablecoin issuers to obtain licenses from the HKMA. Despite this, as of now, no licensed stablecoin issuers are listed in the HKMA’s public register. This regulatory move aims to ensure that Hong Kong stays competitive in the rapidly evolving digital asset space.

Global Push for Crypto Regulation

The draft bill comes as global efforts to regulate the digital asset industry increase. For instance, US lawmakers recently advanced a digital asset market structure bill, which aims to clarify the roles of financial regulators. Hong Kong’s regulators are aligning their efforts with international efforts to combat tax evasion by including revisions to the OECD’s crypto-asset reporting framework. These efforts will support the automatic exchange of tax information starting in 2028.

The regulatory framework being developed by Hong Kong aims to balance innovation with security, positioning the city as a key player in the global digital asset market.

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