Hong Kong’s Financial Secretary Paul Chan recently announced plans for a new policy statement on the development of virtual assets in his 2025-26 Budget proposal. This initiative will explore integrating traditional financial services with virtual asset technologies, enhancing the security and flexibility of real economic activities. The government aims to foster innovation within this sector by encouraging both local and international enterprises to develop applications and solutions using virtual asset technology. Chan also clarified that consultations on licensing for over-the-counter trading and custody services of virtual assets will commence within the year, while a bill regarding stablecoin regulation has been submitted to the Hong Kong Legislative Council. Once approved, the Hong Kong Monetary Authority will expedite the processing of license applications.