Hong Kong rolled out coordinated regulatory initiatives this week to position itself as a comprehensive crypto hub, with authorities unveiling plans for global exchange connectivity and a five-year tokenization roadmap.
The Hong Kong Securities and Futures Commission released two circulars on Monday, allowing local crypto exchanges to connect with international markets through shared order books. SFC-licensed platforms can now integrate their systems with overseas trading operations, though they must obtain prior written approval from the regulator.
Chief Executive Officer Julia Leung said the integration will enable local investors to access global market liquidity more efficiently with improved price discovery and competitive pricing. This represents a departure from the current model, where orders are pre-funded and settled within Hong Kong's borders.
A separate SFC circular exempted tokens and stablecoins licensed by the Hong Kong Monetary Authority from the mandatory 12-month trading history requirement for professional investor offerings. The regulatory adjustments arrive as Hong Kong evaluates its framework amid intensifying global competition, particularly following U.S. President Donald Trump's pro-crypto stance since taking office in January.
Hong Kong Monetary Authority's Fintech 2030 Strategy
Building on the SFC's liquidity initiatives, the Hong Kong Monetary Authority announced its Fintech 2030 strategy on Wednesday during Hong Kong Fintech Week. The framework focuses on four strategic pillars referred to as DART, covering data, artificial intelligence, resilience, and tokenization across 40 initiatives.
The authority will accelerate tokenization of real-world assets, including financial assets, with plans to regularize tokenized government bond issuance. This includes exploring tokenization of Exchange Fund papers alongside the launch of e-HKD, a new stablecoin issued by the HKMA.
The e-HKD recently completed a pilot program that tested the stablecoin for settling tokenized assets, offline payments, and programmability. Settlements on blockchains will be enabled by e-HKD, tokenized deposits and regulated stablecoins, according to the HKMA statement.
The HKMA plans to collaborate with industry players and central banks through Project Ensemble, an upcoming pilot set to launch soon. The authority aims to incorporate AI into the financial system to boost accessibility, responsiveness, and customization in banking services while maintaining transparency and accountability.
Ambition for Digital Asset Leadership
Leung noted that excessively strict requirements risk pushing liquidity and talent toward jurisdictions with lighter oversight, while insufficient regulation could undermine trust and stability.
The region has established licensing frameworks for both crypto exchanges and stablecoin issuers as part of its digital asset strategy, with this week's announcements reinforcing Hong Kong's ambition to become a leading digital asset jurisdiction.