Hong Kong is advancing its position as a leading hub for digital assets with key regulatory developments in the stablecoin and broader crypto sectors. In his 2026-27 budget speech delivered on Wednesday, Financial Secretary Paul Chan outlined significant steps to strengthen the city’s virtual asset framework.

A major highlight is the imminent issuance of the first batch of licenses for stablecoin issuers.

The government has already established a licensing regime for fiat-referenced stablecoin issuers, which took effect last year.

Chan confirmed that regulators plan to grant the initial set of licenses next month, marking a practical milestone in implementation.

This cautious, phased approach prioritizes issuers demonstrating…