Hong Kong Strengthens Its Position in Virtual Assets and Gold Trading Markets

Hong Kong is making bold moves to cement its status as a leading international financial hub. The government is pushing forward with comprehensive regulatory frameworks for virtual asset trading and custody services, while simultaneously pursuing an ambitious expansion in the gold trading market. These initiatives reflect Hong Kong’s determination to modernize its financial infrastructure and compete with other global financial centers in emerging asset classes.

Virtual Asset Regulation Framework Advancing Rapidly

The Financial Services and the Treasury Bureau, working alongside the Securities and Futures Commission, is preparing legislation to establish clear guidelines for virtual asset advisory and management services. Authorities plan to introduce a comprehensive bill to the Legislative Council this year, marking a significant step in bringing cryptocurrency and digital assets into Hong Kong’s regulated financial ecosystem.

In a related development, the Hong Kong Stablecoin Ordinance came into force in the latter half of 2025, with the Hong Kong Monetary Authority actively processing license applications for stablecoin issuers. This formalization of stablecoin regulations demonstrates Hong Kong’s commitment to enabling blockchain-based financial innovation while maintaining regulatory oversight.

Gold Market Emerges as Strategic Growth Area

Recognizing the potential to establish itself as a major regional gold trading and custodial hub, Hong Kong has set an ambitious expansion target: accumulating over 2,000 additional tons of gold storage capacity within the next three years. This strategy positions Hong Kong to compete with other established precious metals trading centers globally.

To support this objective, the government has established a dedicated governance body for the Hong Kong Gold Central Clearing System, which is state-owned. Trial operations of this clearing infrastructure are slated to commence within the year, enabling more efficient gold transactions and settlement across the region.

Financial Infrastructure Modernization

Complementing these policy developments, the Financial Services and the Treasury Bureau is simultaneously examining tax incentive measures designed to enhance Hong Kong’s competitive appeal as a financial destination. Additionally, authorities are exploring the possibility of accelerating stock settlement cycles, potentially reducing the current T+2 timeline to T+1. Such operational enhancements would align Hong Kong’s market infrastructure with best practices observed in other leading financial centers, improving efficiency and reducing counterparty risk.