Hong Kong Formulates Comprehensive Framework for Virtual Assets and Gold Trading Hub

Hong Kong is making significant strides in establishing itself as a premier global financial center through a multi-pronged regulatory and infrastructure development initiative. The government’s strategic push encompasses virtual asset market reforms, precious metals expansion, and operational efficiency improvements designed to strengthen its competitive position in the international financial landscape.

Virtual Asset Regulation and Stablecoin Implementation Take Shape

The Financial Services and the Treasury Bureau, in collaboration with the Securities and Futures Commission, is formulating a comprehensive regulatory framework for virtual asset trading and custody services. Plans include presenting a legislative bill to the Legislative Council in 2026 that will codify regulations governing virtual asset advisory and asset management services. This regulatory push follows the official implementation of the Hong Kong Stablecoin Ordinance in 2025, under which the Hong Kong Monetary Authority is actively processing a growing backlog of license applications. The framework signals Hong Kong’s commitment to creating a structured, compliant environment for digital asset operations while protecting market participants and maintaining financial system integrity.

Establishing Regional Gold Trading and Reserve Hub

Building on its traditional strengths in precious metals trading, Hong Kong is pursuing an ambitious three-year expansion program to increase gold storage capacity by over 2,000 tons. This initiative aims to position the city as a regional gold reserve and trading hub, capitalizing on its geographic location and established market infrastructure. The government has established a dedicated governance body for the Hong Kong Gold Central Clearing System, which is entirely government-owned. Trial operations of the clearing system are scheduled to commence this year, enabling more efficient gold settlement and storage management.

Accelerating Market Infrastructure and Financial Efficiency

To further enhance its attractiveness as an international financial hub, the Financial Services and the Treasury Bureau is exploring targeted tax relief measures and operational improvements. A key initiative involves examining the feasibility of accelerating the stock settlement cycle from the current T+2 (two business days) standard to T+1 (one business day), bringing Hong Kong’s market operations in line with leading global exchanges. These infrastructure enhancements, combined with the regulatory innovations in virtual assets and precious metals trading, demonstrate Hong Kong’s deliberate strategy to modernize its financial ecosystem and maintain its regional and global relevance.