Hong Kong’s Financial Secretary Paul Chan spoke at the Hong Kong Web3 Festival 2025, emphasizing the importance of developing Web3 and the need for changes in the jurisdiction’s regulatory framework. He announced the upcoming passage of a bill regulating stablecoins.
This is reported by Finway
According to Chan, the Hong Kong authorities plan to implement changes to the legislation regarding crypto assets. This will include the regulation of stablecoins, licensing of custodians, as well as over-the-counter (OTC) trading platforms, alongside the already existing ETFs.
In his speech, the minister noted:
“Legislation regulating stablecoins is being prepared for passage 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.”
Additionally, he discussed upcoming consultations with market participants regarding the licensing of OTC platforms and custodians, although he did not provide specifics. Paul Chan also highlighted the staking of crypto assets by exchange-traded funds and licensed service providers. On April 7, 2025, the Securities and Futures Commission (SFC) published guidelines for such activities, which outline clear requirements for risk management, disclosure, fund management, and client asset coverage. In particular, authorized virtual asset exchange-traded funds can engage in staking only through licensed providers.
SFC Chair Julia Leung emphasized the importance:
“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 in a regulated environment where the safety 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.