Hong Kong is preparing for a significant milestone in its goal of becoming a global hub for digital assets. The region's Chief Financial Officer, Paul Chan Mo-po, announced that the first stablecoin licenses will begin to be issued next month. While the licenses will initially be shared with a limited number of companies, officials emphasize that the process will be controlled and selective.
In his speech at CoinDesk's Consensus Hong Kong conference, Chan stressed that the institutions receiving licenses must have innovative use cases, sustainable and reliable business models. Strong regulatory compliance capacity will also be among the key criteria. This approach demonstrates that the region prioritizes building robust infrastructure and trust rather than rapid growth.
Custody services and legal framework are expanding
In addition to stablecoin licenses, the licensing regime for companies providing crypto asset custody services is also being clarified. Chan stated that a new legal regulation concerning this area is planned to be submitted to the Legislative Council in the summer. Considering this alongside the currently existing framework, it appears that Hong Kong aims to create a holistic regulatory structure that covers the entire digital asset ecosystem. According to officials, these steps will both strengthen investor protection and increase the interest of institutional actors in the region. Hong Kong's proactive approach is noteworthy at a time when regulatory clarity is gaining importance on a global scale.
Tokenization and DeFi-TradFi Convergence
In his speech, Paul Chan stated that three fundamental trends are maturing: tokenization of real-world assets, increased interaction between decentralized finance (DeFi) and traditional finance, and the intersection of artificial intelligence and digital assets.
On the tokenization side, Chan stated that the transition from the "trial" phase to real application has begun, reminding that traditional financial instruments such as government bonds and money market funds are starting to be issued on-chain. Thanks to digital ledger technology, clearing processes are accelerating, assets are becoming divisible, and many previously illiquid products are opening up to new investor groups.
Emphasis on Artificial Intelligence and "machine economy"
Another topic that Chan highlighted was the rise of artificial intelligence. He said that with the development of AI agents capable of making autonomous decisions, the first signals of a new era called the "machine economy" can be seen. In this scenario, AI agents will be able to hold digital assets, pay for services, and transact with each other on-chain.
SFC Decision
Meanwhile, the Hong Kong Securities and Futures Commission (SFC) announced new policy updates for the crypto market. The regulator published a high-level framework for licensed platforms to offer crypto perpetual contracts to professional investors.
Under the new regulation, perpetual products will only be available to professional investors. Platforms are required to implement strict risk management rules such as leverage limits, collateral requirements, liquidation mechanisms, and transparency obligations. These products will also be under constant supervision, and platforms will need to prove they have strong internal control systems.
The SFC also allowed licensed brokerage firms to provide financing for crypto transactions using a wider range of collateral. The regulation specifically stated that Bitcoin and Ether could be accepted as collateral. However, customer suitability assessments and internal risk controls will play a critical role in this process.
SFC Administrator Eric Yip said that this year's focus is on market quality, not rapid expansion. The priority is; The goals are to increase liquidity, strengthen price discovery, and build investor confidence. Within this framework, affiliated companies will be permitted to act as market makers under certain conditions, but governance and oversight rules will be strict to prevent conflicts of interest.
