In the 2026 Budget, Financial Secretary Paul Chan stated that the government will introduce a draft bill on digital asset policy within the year to establish a licensing regime for providers of services such as digital asset trading and custody, Hong Kong has already implemented a licensing regime for fiat-pegged stablecoin issuers and will issue the first batch of licenses in March. The government and financial regulators will continue to encourage licensed issuers to explore more application scenarios while ensuring compliance and risk control. Paul Chan noted that the Securities and Futures Commission (SFC) will also further enhance liquidity in Hong Kong’s digital asset market while fully safeguarding investors, providing professional investors with a wider range of products and services, and establishing an accelerator to expedite market innovation. (Hong Kong Economic Times)