Paul Chan: First batch of stablecoin issuer licenses issued in March; draft digital asset policy regulations to be submitted this year.

Hong Kong Financial Secretary Paul Chan Mo-po stated in the "Budget 2026" that the government will submit a draft digital asset policy ordinance this year, establishing a licensing system for service providers such as digital asset trading and custody. Hong Kong already has a licensing system for fiat-backed stablecoin issuers, with the first batch of licenses to be issued in March. The government and financial regulators will continue to encourage licensed issuers to explore more application scenarios while ensuring compliance and controllable risks. Chan indicated that the Hong Kong Securities and Futures Commission (SFC) will also further promote liquidity in the Hong Kong digital asset market, providing more products and services for professional investors, and will establish an accelerator to accelerate market innovation, while fully protecting investors. (Jinshi)