TLDR
- Hong Kong’s Finance Secretary Paul Chan defended the city’s regulatory framework for digital assets at the World Economic Forum.
- Chan emphasized the “same activity, same risk, same regulation” principle that guides Hong Kong’s approach to digital asset regulation.
- The city aims to ensure digital assets contribute to the real economy while maintaining financial stability and protecting investors.
- Hong Kong has implemented a licensing regime for virtual asset trading platforms and launched pilot programs for tokenized deposits.
- Stablecoin licenses are expected to be issued in the first quarter of 2026 as part of Hong Kong’s ongoing crypto regulation efforts.
Hong Kong’s Finance Secretary, Paul Chan, emphasized the city’s regulatory framework for digital assets during a speech at the World Economic Forum (WEF) in Davos. He defended the “same activity, same risk, same regulation” principle that guides Hong Kong’s approach to crypto assets. This framework ensures that digital asset businesses are regulated based on the risks of their activities, not just the technology they employ.
Regulating Digital Assets with a Balanced Approach
At the WEF workshop, Chan highlighted the importance of regulating digital assets while balancing risks to financial stability, market integrity, and investor protection. He noted that the growth of digital assets must serve the real economy. “We must also build strong guardrails to address risks to financial stability,” Chan remarked. His comments came in light of the increasing overlap between finance and technology.
Hong Kong has introduced various regulatory measures to govern the growing digital asset sector. These include a licensing regime for virtual asset trading platforms and initiatives from the Hong Kong Monetary Authority (HKMA). The city has also begun testing tokenized deposits and digital assets through a pilot program led by HKMA.
Hong Kong’s Push for Tokenization and Stablecoin Regulation
Hong Kong is expanding its tokenization efforts, particularly in the environmental sector. The city has issued three batches of tokenized green bonds worth $2.1 billion since 2023. Stablecoin regulation is also on the agenda, with Chan announcing that stablecoin licenses would be issued in the first quarter of 2026. These moves are part of Hong Kong’s broader effort to establish itself as a leading global crypto hub.
The Hong Kong Monetary Authority’s “Fintech 2030” strategy also includes initiatives to foster tokenization. The strategy outlines more than 40 initiatives aimed at expanding the city’s tokenization ecosystem over the next five years. This includes leveraging data, artificial intelligence, and resilience to drive digital innovation.
In addition to local developments, Hong Kong is increasingly recognized for its role in global blockchain advancements. In October 2025, the Hong Kong-based subsidiary of China Merchants Bank tokenized a $3.8 billion U.S. dollar money market fund. The fund was issued onchain through the BNB Chain, underscoring Hong Kong’s leadership in digital asset technology.
Further collaboration on blockchain technology has taken place in the financial sector. In November 2025, Banco Inter, a Brazilian digital bank, completed a blockchain-based trade finance pilot with Chainlink, the Central Bank of Brazil, and HKMA.
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