Catenaa, Wednesday, June 18, 2025-Financial Secretary Paul Chan Mo-po said Hong Kong will intensify efforts to become a major global hub for digital assets, citing a surge in local banking activity tied to the sector and rising interest in stablecoins from both traditional finance and crypto firms.
In a blog post Sunday, Chan said Hong Kong had made “great progress in digital finance,” with total digital asset transaction volume at local banks reaching HK$17.2 billion (US$2.19 billion) in 2024. Custodied assets stood at HK$5.1 billion (US$649.7 million) by year’s end.
Chan confirmed that 10 digital asset platforms had already secured licenses, while eight more applications were being reviewed by the Securities and Futures Commission. He added that the government would soon issue a second policy statement to reflect ongoing market developments.
A key focus is stablecoin regulation. Hong Kong’s new Stablecoin Ordinance, effective August 1, introduces a licensing regime for issuers. Chan said the rules aim to provide clarity and create a robust foundation for digital currencies backed by fiat, which combine the benefits of blockchain efficiency with currency stability.
Chan emphasized the importance of innovation, saying it was essential for market evolution. The government is also advancing frameworks for custody and OTC transactions, and will allow licensed spot crypto ETFs to offer staking services.
Hong Kong’s open approach allows stablecoin issuers to peg assets to multiple fiat currencies, a model Chan said will enhance market liquidity and attract global players.
