Hong Kong Finance Secretary Paul Chan defended town’s “similar exercise, similar threat, similar regulation” framework for digital property whereas talking on the World Financial Discussion board in Davos, based on the South China Morning Publish.
Talking at a closed-door workshop in Switzerland on Tuesday, Chan stated finance and know-how have been more and more intertwined however required a balanced regulatory strategy. He stated:
Digital property ought to serve the true economic system. However we should additionally construct sturdy guardrails to deal with dangers to monetary stability, market integrity and investor safety.
Chan pointed to town’s “similar exercise, similar threat, similar regulation” precept for digital property, which he stated guides how the sector is regulated. The precept means digital asset companies are regulated based on the dangers of their actions reasonably than the know-how they use.
He cited current measures together with a licensing regime for digital asset buying and selling platforms and a Hong Kong Financial Authority pilot testing transactions utilizing tokenized deposits and digital property, based on the SCMP.
Chan added that stablecoin licenses are anticipated to be issued within the first quarter, and that Hong Kong has already issued three batches of tokenized inexperienced bonds, standard debt issued onchain to fund environmental tasks, totaling $2.1 billion since 2023.
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Hong Kong’s push into asset tokenization
Hong Kong, a particular administrative area of China that has emerged as a world crypto hub, has more and more pointed to tokenization as a sensible use case for digital property.
In October, a Hong Kong-based subsidiary of China Retailers Financial institution (CMB) tokenized a $3.8 billion US greenback cash market fund on BNB Chain, issuing the fund onchain by means of CMB Worldwide Asset Administration.
The Hong Kong Financial Authority (HKMA) just lately stated its Fintech 2030 technique will prioritize knowledge, synthetic intelligence, resilience and tokenization beneath a framework referred to as DART, outlining greater than 40 initiatives aimed toward increasing town’s tokenization ecosystem over the following 5 years.
In November 2025, Brazilian digital financial institution Banco Inter accomplished a blockchain-based commerce finance pilot with Chainlink, the Central Financial institution of Brazil and the Hong Kong Financial Authority, testing cross-border settlement between Brazil and Hong Kong. The 2 international locations are main buying and selling companions and each are members of the BRICS bloc.
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