Hong Kong's Financial Secretary, Paul Chan, announced in the 2026 Budget that the government will propose a digital asset policy bill this year. This legislation aims to establish a licensing system for digital asset trading and custody service providers. Currently, Hong Kong has implemented a licensing regime for fiat-backed stablecoin issuers, with the first licenses expected to be issued in March. Chan also highlighted that the Hong Kong Securities and Futures Commission (SFC) will work to enhance market liquidity for digital assets while ensuring investor protection. The SFC plans to offer more products and services for professional investors and will establish an accelerator to foster market innovation.