Hong Kong has announced new measures to enhance its crypto regulatory framework, including tax concessions for institutional investors and a licensing regime for stablecoins. Financial Secretary Paul Chan outlined these initiatives in the 2026–27 Budget, aiming to classify digital assets as qualifying investments for single-family offices and tighten regulations for stablecoin issuers under the Hong Kong Monetary Authority (HKMA). The new policy will recognize digital assets and precious metals as qualifying investments, providing clarity for tax treatment. Stablecoin issuers will be required to obtain licenses from the HKMA, maintain full reserves, and comply with anti-money laundering and governance standards. These measures are set to be implemented through 2025–2026, with the Stablecoins Ordinance already in effect since August 2025. The initiatives aim to balance capital formation with financial stability, encouraging institutional participation within a regulated framework.