Hong Kong Is Reaffirming Its Goal to Become a Major Global Virtual Assets Center

This move follows Hong Kong's initial virtual asset policy statement from October 2022. That first statement

Hong Kong is reaffirming its goal to become a major global center for virtual assets, with a second policy statement expected soon.

This statement will prioritize combining the traditional strengths of Hong Kong's financial hub with new virtual asset technologies to improve economic security and flexibility, according to Financial Secretary Paul Chan Mo-po.

The Southeast Asian city-state first announced its virtual asset policy in October 2022. The policy outlined the city's regulatory approach and ambitions for the cryptocurrency sector.

Local media reports suggest the upcoming policy declaration will encourage both domestic and international companies to explore fresh uses for virtual asset technology as the local government assembles a vibrant and well-regulated digital finance scene.

Q2 policy statement

The new policy, which sources say could be released as early as the second quarter of this year, will place greater emphasis on balancing industry growth with regulatory oversight.

This next declaration will aim to build market confidence with strong regulatory frameworks, in contrast to the less regulated approach from two and a half years ago.

“With regulation comes confidence, and with confidence, there is room for development,” a government source was quoted by the local Computer Today publication.

Hong Kong will also launch a new consultation process this year to assess licensing for over-the-counter (OTC) virtual asset transactions and custodian services.

Stablecoin regulation and SFC’s ASPIRe roadmap

Regulation for stablecoins is also progressing, with the government introducing a framework late last year. Once these rules are approved, the Hong Kong Monetary Authority (HKMA) plans to speed up the licensing for stablecoin issuers.

In other news, Hong Kong's Securities and Futures Commission (SFC) has presented a roadmap called "ASPIRe" to strengthen the city's position as a global cryptocurrency hub.

Announced on February 19, ASPIRe addresses issues like fragmented liquidity, regulatory arbitrage, and market volatility. It lays out a five-pillar strategy—Access, Safeguards, Products, Infrastructure, and Relationships—along with 12 key initiatives. These are aimed at improving blockchain efficiency, streamlining compliance, and expanding market access.