Hong Kong’s Financial Secretary Paul Chan spoke at the Hong Kong Web3 Festival 2025, emphasizing the importance of Web3 and the need for legislative changes. He announced the development of a bill regulating stablecoins.
This is reported by Business • Media
The Hong Kong authorities plan to soon amend the legislative framework regarding crypto assets, including the regulation of stablecoins, licensing of custodians, and OTC platforms. These points were highlighted during his speech at the festival.
“Legislation to regulate stablecoins is being prepared for approval soon. My colleagues from the Bureau of Financial Services and the Treasury and the Hong Kong Monetary Authority (HKMA) are working diligently to ensure that the relevant licensing regime comes into effect this year.”
Paul Chan also noted that the government plans to consult with market participants regarding the implementation of a licensing regime for over-the-counter trading and custodians, although he did not provide further details.
Additionally, the minister touched on the topic of staking crypto assets on exchanges. On April 7, 2025, the Securities and Futures Commission (SFC) published guidelines outlining the requirements for counterparties. This circular mandates compliance with risk management standards, disclosure, fund management, and coverage of client assets. In particular, authorized exchange-traded funds may engage in staking only through licensed service providers.
“Expanding the range of regulated services and products is crucial for supporting the healthy development of Hong Kong’s virtual asset ecosystem. However, this expansion must occur within a regulated environment where the security of clients’ virtual assets remains at the forefront of the compliance framework for providing such services.”
It is worth noting that trading of spot Bitcoin and Ethereum ETFs began in Hong Kong at the end of April 2024.