Hong Kong Bets Big on Crypto Future – Extends SFC Chief’s Term to 2028

The extension signals confidence in Leung’s approach as the city positions itself at the forefront of digital asset regulation and global financial competitiveness.

Leung’s tenure has coincided with Hong Kong’s transformation into one of the world’s most closely monitored crypto markets. Earlier this year, the city’s stablecoin ordinance officially came into force – creating a licensing structure that forces issuers of fiat-backed stablecoins to maintain complete reserve coverage and undergo oversight by the Hong Kong Monetary Authority (HKMA). The framework also introduced over-collateralization requirements to guard against volatility, setting new standards for risk management in the sector.

Applications for stablecoin licenses closed in late September, with the first approvals expected in early 2026. The initiative aims to balance innovation with protection, allowing Hong Kong to nurture a thriving digital asset market while avoiding the pitfalls that have plagued unregulated jurisdictions.

Regulators have also been quick to caution investors amid rising speculation in “stablecoin-linked” equities. In a joint statement, the SFC and HKMA emphasized that recent market swings were a reminder to stay alert to misinformation and risky hype, particularly on social media. Leung herself warned that investors must “stay clear-minded about the risks involved,” reinforcing her stance on responsible participation in emerging financial markets.

Since taking office in 2023, Leung has pushed to unify oversight of virtual asset trading platforms under strict custody, cybersecurity, and investor-protection standards. This has drawn a wave of interest from both domestic and global service providers eager to operate in a clearly defined regulatory environment. The new framework has also encouraged partnerships with firms developing tokenized assets – marking a convergence between traditional finance and blockchain innovation.

Hong Kong’s resurgence as a listing destination further underscores its growing appeal. Financial officials credit the city’s regulatory transparency and Leung’s pragmatic leadership for attracting IPOs and cross-border capital. Her extended mandate is seen as key to preserving this momentum, ensuring policy consistency as Hong Kong continues to craft one of the world’s most comprehensive approaches to digital finance.

As the city deepens its ties to the virtual asset economy, Leung’s next term will likely focus on refining cross-agency coordination, scaling oversight infrastructure, and securing Hong Kong’s standing as Asia’s most advanced bridge between institutional finance and the digital asset world.

Source: Bloomberg

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