Hong Kong Financial Services and the Treasury Bureau: Will submit four draft regulations for virtual asset service providers this year and promote the trial operation of the gold clearing system

Foresight News reports that according to the Hong Kong Government Gazette, Secretary for Financial Services and the Treasury Christopher Hui stated at the Legislative Council policy briefing on January 30 that the Treasury Bureau and the Securities and Futures Commission are drafting details of the regulatory regime for virtual asset trading and custody services. The goal is to submit draft legislation to the Legislative Council this year to regulate four types of service providers: virtual asset trading, virtual asset management services, and others. Additionally, Hong Kong’s ‘Stablecoin Ordinance’ officially came into effect in August 2025, and the Hong Kong Monetary Authority is currently processing related licensing applications.

In establishing an international gold trading market, Hong Kong has set a target to expand gold storage by over 2,000 tons within three years to build a regional gold reserve hub. The government-owned Hong Kong Gold Central Clearing and Settlement System Authority has been established, with the target clearing system to commence trial operations this year. Furthermore, the Treasury Bureau is studying the optimization of tax relief measures related to the Financial Asset Center and exploring the possibility of shortening the stock settlement cycle from the current T+2 to T+1.

Foresight News previously reported that the Hong Kong Treasury Bureau plans to submit legislative proposals to the Legislative Council this year to implement the OECD’s Crypto-Asset Reporting Framework (CARF). The goal is to automatically exchange tax-related information on crypto-asset transactions with other tax jurisdictions starting from 2028, to combat cross-border tax evasion and enhance international tax transparency.