Hong Kong Securities and Futures Commission: The digital asset ecosystem in Hong Kong is continuing to develop vigorously.

On May 29, the Chairman of the Hong Kong Securities and Futures Commission, Dr. Carlson Tong, delivered a keynote speech at the Hong Kong Digital Finance Summit 2026, stating that digital assets are far more than just emerging investment tools. The underlying technology has become a key engine driving the evolution of the financial system, driving changes in global market operations, fund flow, and service models. Facing the digital finance wave, the Hong Kong Securities and Futures Commission does not adhere to traditional rules, but actively builds a balanced mechanism that can stimulate innovation and maintain market resilience. Transforming innovative momentum into sustainable, high-quality market development in a controlled risk environment. Dr. Tong introduced that Hong Kong, as an international financial center, has deep market foundations and an open and orderly business environment. It has significant advantages in capital flow, professional services, risk management capabilities, and cross-border connectivity. In the latest Global Financial Center Index, Hong Kong ranked first in the world in the field of financial technology, fully reflecting the international market's recognition of Hong Kong's financial technology market vitality, talent supply, regulatory environment, and technological infrastructure. In terms of market infrastructure, Hong Kong's capital markets are actively promoting technology upgrades centered on blockchain, continuously improving trading efficiency and system security, laying a solid foundation for institutional improvement and market expansion. On the regulatory front, Hong Kong is continuously optimizing a comprehensive regulatory framework for virtual assets, covering custody, trading, asset management, and investment advisory. Currently, the public consultation on the relevant licensing regime has been completed, and the Securities and Futures Commission of Hong Kong is closely cooperating with the Financial Services and Treasury Bureau of Hong Kong to finalize legislative proposals, aiming to submit a draft bill to the Legislative Council in 2026. Ultimately, Hong Kong will establish a regulatory system that is aligned with international standards and strictly adheres to the principle of "same business, same risks, same rules", providing a clear path for financial market innovation and solid protection for investors. He pointed out that as the adoption of asset tokenization applications becomes more widespread, the management scale of tokenized retail products has grown by nearly six times in the past year. In addition, since the launch of the first batch of virtual asset spot ETFs in 2024, the total market value has accumulated by over 90%, indicating a continuous increase in market acceptance of new financial products. Currently, there are 12 licensed virtual asset trading platforms in Hong Kong, with a total trading volume exceeding HK$640 billion last year; in the first quarter of this year, the trading volume more than doubled year-on-year, reflecting a significant increase in market activity. In addition, brokers engaged in virtual asset-related businesses saw their commission income increase by over 80% year-on-year last year, confirming the robust upward trend in the market. The Hong Kong Securities and Futures Commission continuously strives to achieve a dynamic regulatory balance between promoting market innovation and resilience. Practically, as trading activities of institutional and retail investors in virtual assets become more active, Hong Kong has orderly expanded the products and services that licensed institutions can provide, including providing a more diverse product selection for professional investors, piloting secondary market trading of tokenized products, introducing financing services related to virtual assets, establishing a regulatory framework for virtual asset leverage products, and actively promoting the connection of local ecosystems to global liquidity to effectively reduce transaction costs, enhance market efficiency, and comprehensively promote the construction of a vibrant ecosystem. At the same time, to prevent systemic risks, Hong Kong has strengthened platform custody standards and customer asset protection guidelines, and fully utilized regulatory technology to enhance monitoring and response to risks such as money laundering, cybersecurity threats, and market manipulation, in order to fully safeguard customer asset security and market confidence. Moreover, in response to the cross-border nature of the market, the Hong Kong Securities and Futures Commission maintains constant dialogue with the industry and stakeholders, staying close to global market trends; and actively expands its international cooperation network. For example, signing a bilateral regulatory cooperation memorandum with the United Arab Emirates Securities and Commodities Authority to jointly promote responsible financial innovation and facilitate cross-border regulatory coordination. He emphasized that supporting innovation without lowering standards; promoting development without weakening protection. This is the core spirit of the Hong Kong Securities and Futures Commission in developing the digital asset ecosystem - under effective regulation, allowing the market to expand in an orderly manner, transforming Hong Kong into a dynamic and resilient hub for digital assets. Dr. Tong emphasized that with a sound regulatory system and risk management framework, Hong Kong will be able to jointly build a more resilient, more efficient, stable, and globally competitive digital asset ecosystem, consolidating its position as a leading international financial center.