Hong Kong's Central Market Expansion: Building a Comprehensive Regulatory Ecosystem for Digital and Gold Assets

Hong Kong is accelerating its transformation into a multifaceted international financial center through a series of sweeping regulatory and market infrastructure initiatives. The city’s commitment to establishing itself as a premier central market for both digital and traditional assets is reshaping its financial landscape in 2026 and beyond.

Virtual Asset Central Market Framework Takes Shape

The Financial Services and the Treasury Bureau, in collaboration with the Securities and Futures Commission, is developing comprehensive regulations for virtual asset advisory and management services. A legislative bill covering these protections is expected to be introduced to Hong Kong’s Legislative Council soon, marking a pivotal moment for the cryptocurrency trading and custody services sector. This regulatory blueprint signals Hong Kong’s ambition to centralize digital asset operations under a robust supervisory framework that rivals global standards.

Stablecoin Regulations Now Live as HKMA Processes Licenses

A significant milestone was reached in August 2025 when the Hong Kong Stablecoin Ordinance came into force. The Hong Kong Monetary Authority is currently processing stablecoin issuer license applications, which reflects strong institutional interest in establishing stablecoin infrastructure within Hong Kong’s central market. These regulations create a transparent pathway for stablecoin projects to operate under government oversight, reinforcing Hong Kong’s role as a trusted hub for digital currency innovation.

Gold Trading Central to Become Regional Hub

Beyond digital assets, Hong Kong is strategically positioning itself as Asia’s premier gold trading central. The government has committed to expanding physical gold storage capacity by over 2,000 tons within the next three years, with aims to complete this objective by 2028. A newly established Hong Kong Gold Central Clearing System—a fully government-owned entity—is preparing for trial operations in 2026. This infrastructure development is designed to consolidate Hong Kong’s standing as the region’s primary gold reserve hub and facilitate international bullion trading.

Financial Market Modernization: Accelerating Settlement and Tax Competitiveness

The regulatory expansion extends to modernizing core trading mechanics. The Financial Services and the Treasury Bureau is actively exploring measures to reduce the stock settlement cycle from the conventional T+2 to T+1, aligning Hong Kong with global best practices in market efficiency. Simultaneously, the government is assessing targeted tax relief measures to enhance Hong Kong’s competitiveness as an international financial center and attract more institutional capital flows.

Together, these initiatives demonstrate Hong Kong’s strategic vision to consolidate its position as Asia’s premier central market, offering integrated infrastructure for virtual assets, precious metals, and conventional securities under one cohesive regulatory umbrella.