21st September 2026
By Anjali Kochhar
Hong Kong is set to further expand its digital asset regulatory framework, with authorities planning tighter virtual asset licensing rules and broader support for tokenized investment products backed by real-world assets.
The measures were outlined in the Hong Kong government’s 2026 Policy Address and are aimed at creating clearer regulatory pathways for virtual asset service providers while supporting the development of new blockchain-based financial products.
Hong Kong Plans Tighter Virtual Asset Licensing Rules
Under the proposed changes, Hong Kong’s Securities and Futures Commission (SFC) will enhance the existing virtual asset licensing regime and introduce more specific regulatory guidelines. The objective is to give virtual asset service providers greater clarity over compliance requirements and the process for operating within the regulated market.
Hong Kong Expands Rules for Tokenized Real-World Assets
The government also plans to strengthen rules governing tokenized investment products. The revised framework will facilitate the issuance and trading of tokenized products backed by gold and other suitable real-world assets on licensed platforms. Authorities are also encouraging financial institutions and market participants to develop additional tokenization-based products.
The move comes as Hong Kong continues to expand its regulated digital asset ecosystem. In April 2026, the SFC introduced a framework allowing the pilot of secondary trading for tokenized SFC-authorized investment products on licensed virtual asset trading platforms. As of March, 13 tokenized products were available to the public in Hong Kong, with assets under management in their tokenized classes reaching HK$10.7 billion, according to the SFC.
Stablecoins and Tokenized Deposits Gain Regulatory Support
Stablecoins are another part of the government’s digital asset strategy. The Policy Address calls for regulated stablecoins to be traded on licensed virtual asset platforms and potentially used to settle tokenized money market funds.
Meanwhile, the Hong Kong Monetary Authority (HKMA) plans to expand applications for tokenized deposits and work with mainland Chinese counterparts on trade-finance use cases. It is also targeting the implementation of central bank digital currency settlement and 24/7 operations under the EnsembleTX initiative around the end of 2026.
Hong Kong Pushes Deeper Into Regulated Digital Assets
Hong Kong Exchanges and Clearing is also preparing further tokenization initiatives, including a planned pilot for tokenized warehouse receipt financing in 2027. The broader effort reflects Hong Kong’s push to connect blockchain technology with conventional financial markets while maintaining regulatory oversight.
Together, the initiatives are expected to expand the range of regulated digital asset products available in Hong Kong and provide clearer rules for businesses operating across virtual assets, tokenized securities, stablecoins and other blockchain-based financial applications.
