Hong Kong Promotes Comprehensive Legal Framework for Virtual Assets and Gold Market Expansion

To establish itself as a leading financial center in the region, Hong Kong is focusing on three strategic pillars:完善虚拟资产的法律框架, developing stablecoin regulations, and expanding the gold trading market. These efforts reflect the local government’s commitment to seizing opportunities from the digital financial revolution.

Virtual Asset Legal Framework Soon to Be Approved by Hong Kong

The Financial Services and Treasury Bureau along with the Securities and Futures Commission are advancing the details of a comprehensive legal framework for trading and custody of virtual assets. According to ChainCatcher, these two agencies plan to submit a bill to the Legislative Council in 2026, including detailed regulations on virtual asset advisory and management services. This new legal framework is designed to provide legal clarity for service providers in the virtual asset sector while protecting investors’ rights.

Hong Kong Stablecoin Regulations: From Theory to Practice

A significant milestone has been reached as Hong Kong’s Stablecoin Regulations officially came into effect in August 2025. The Hong Kong Monetary Authority is currently processing related licensing applications, allowing qualified organizations to issue and manage regulated stablecoins. This move marks a transition from theoretical research to practical application in managing digital assets issued with digital currency.

Hong Kong’s Gold Market Expansion Strategy

Alongside efforts in virtual assets, Hong Kong also aims to become a regional gold reserve hub. The government has outlined a plan to increase gold reserves by over 2,000 tons within the next three years. To support this goal, a regulatory agency for the Hong Kong Gold Settlement System, fully owned by the government, has been established. Pilot operations of the payment system are expected to commence in 2026 to ensure efficiency and safety before full-scale deployment.

Hong Kong Reforms in Financial Trading Mechanisms

To complete its financial ecosystem, the Financial Services and the Treasury Bureau is exploring measures to reduce tax burdens to optimize Hong Kong as an international financial center. In particular, the government is studying the possibility of shortening the stock settlement cycle from T+2 to T+1, which would accelerate trading and improve market efficiency. These reforms, combined with the virtual asset legal framework, stablecoin regulations, and gold market expansion, demonstrate Hong Kong’s comprehensive transformation efforts to strengthen its leading position in regional digital finance.