Hong Kong will put forward legislation this year to establish a licensing regime covering virtual asset trading, custody, advisory and management services, according to Secretary for Financial Services and the Treasury Christopher Hui.

Hui outlined the plan on October 5 during a policy briefing of the Legislative Council's Finance Committee, which reviewed financial policies under Hong Kong's 2026–2030 Five-Year Plan and the 2026 Policy Address.

Licensing requirements determine which firms can lawfully provide financial services and under what supervisory standards. Hong Kong has operated a licensing regime for virtual asset trading platforms since June 2023, and the planned bill would extend statutory licensing across custody, advisory and management services as well. For digital-asset firms and their clients, that framework will shape how such services can be offered in the city and the standards attached to them.

The proposed rules form part of a broader push to strengthen the city's position as an international financial center while cultivating new sources of economic growth. The government said its strategy is shifting away from pursuing financial-sector scale toward improving core functions, including price discovery and the sector's capacity to support the real economy.

Alongside the virtual asset framework, authorities are examining ways to strengthen the legal framework for technology and telecommunications companies to detect and remove fraudulent content, including scams generated or manipulated with artificial intelligence.

Rather than treating virtual assets as a standalone sector, the government has positioned them within a wider financial-market development strategy. That strategy also includes measures to reinforce Hong Kong's role as an offshore renminbi hub, improve the competitiveness of its stock market and expand its asset and wealth-management capabilities.

Attention will now turn to the bill's final scope, licensing criteria and implementation timetable once it is introduced in the Legislative Council.

Gold Market Expansion Adds Another Growth Pillar

Hong Kong is also preparing to build a broader commodities trading ecosystem, with gold identified as the initial focus. The Hong Kong Gold Central Clearing and Settlement System is scheduled to officially begin operations in the first quarter of 2027. Central clearing and settlement systems consolidate post-trade processing among market participants within a single venue.

The Hong Kong Stock Exchange is expected to announce details this year of a new renminbi-denominated, physically settled gold futures contract. Regulators are also planning adjustments to the over-the-counter derivatives framework to facilitate risk and funding management for gold and other commodities.

The government said it is coordinating measures across the financial sector to support the development of the gold market. These include greater flexibility for Mandatory Provident Fund investments in gold exchange-traded funds, closer coordination on insurance for precious metals and a dedicated government service to assist international and domestic gold traders seeking to participate in Hong Kong's market.

The initiatives complement broader efforts to deepen renminbi financial activity. Planned measures include expanding the use of renminbi-denominated government financing and improving offshore renminbi liquidity and market infrastructure.

Taken together, the measures indicate that Hong Kong is seeking to combine regulation of emerging digital-asset activities with the expansion of established financial markets, using both technology and traditional assets to reinforce its role as a gateway between mainland China and global investors.