Hong Kong To Submit Bill This Year For Licensing Of Virtual Asset Trading And Custody
In Brief
Hong Kong plans legislation this year to license virtual asset trading, custody, advisory and management services as part of its financial strategy.
Hong Kong plans to submit legislation this year to establish a licensing regime covering virtual asset trading, custody, advisory and management services, according to Secretary for Financial Services and the Treasury Christopher Hui.
Hui outlined the measure on October 5 during a policy briefing of the Legislative Council’s Finance Committee on financial policies under Hong Kong’s 2026–2030 Five-Year Plan and the 2026 Policy Address.
The proposed rules form part of a broader effort to strengthen Hong Kong’s position as an international financial center while developing new sources of economic growth. The government said the strategy is shifting from pursuing financial-sector scale toward improving core functions, including price discovery and the sector’s ability to support the real economy.
Alongside virtual assets, authorities are examining ways to strengthen the legal framework for technology and telecommunications companies to detect and remove fraudulent content, including scams generated or manipulated using artificial intelligence.
The government’s approach places virtual assets within a wider financial-market development strategy rather than treating them as a standalone sector. It also includes measures to reinforce Hong Kong’s role as an offshore renminbi hub, improve the competitiveness of its stock market and expand its asset and wealth-management capabilities.
Gold Market Expansion Adds Another Growth Pillar
Hong Kong is also preparing to build a broader commodities trading ecosystem, with gold identified as an initial focus. The Hong Kong Gold Central Clearing and Settlement System is scheduled to officially begin operations in the first quarter of 2027.
The Hong Kong Stock Exchange is expected to announce details this year of a new renminbi-denominated, physically settled gold futures contract. Regulators are also planning adjustments to the over-the-counter derivatives framework to facilitate risk and funding management for gold and other commodities.
The government said it is coordinating measures across the financial sector to support the development of the gold market. These include greater flexibility for Mandatory Provident Fund investments in gold exchange-traded funds, closer coordination on insurance for precious metals and a dedicated government service to assist international and domestic gold traders seeking to participate in Hong Kong’s market.
The initiatives complement broader efforts to deepen renminbi financial activity. Planned measures include expanding the use of renminbi-denominated government financing and improving offshore renminbi liquidity and market infrastructure.
Taken together, the measures indicate that Hong Kong is seeking to combine regulation of emerging digital-asset activities with the expansion of established financial markets, using both technology and traditional assets to reinforce its role as a gateway between mainland China and global investors.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
