Hong Kong's Financial Secretary, Paul Chan Mo-po, announced in the 2026 Budget that the government plans to introduce a digital asset policy bill within the year. According to PANews, this legislation will establish a licensing system for digital asset trading and custody service providers. Currently, Hong Kong has implemented a licensing system for fiat stablecoin issuers, with the first batch of licenses set to be issued in March. The government and financial regulators will continue to support licensed issuers in exploring more application scenarios under compliance and risk control measures.Chan stated that the Securities and Futures Commission will further enhance the liquidity of Hong Kong's digital asset market while ensuring investor protection. This initiative aims to offer more products and services to professional investors and establish an accelerator to expedite market innovation.