Hong Kong virtual assets upgrade from "regulatory clarity" to "widespread adoption," what's the next step for implementation

The development of virtual assets in Hong Kong has entered a new stage. The Hong Kong Securities and Futures Professionals Association recently stated that Hong Kong has completed the initial regulatory infrastructure in the virtual asset sector, and the next focus should shift to the commercialization and application implementation. The Hong Kong government plans to release the 2026/2027 fiscal budget on February 25, which will focus on virtual assets and investor protection, indicating that policy support directions are already clear. From “clear regulation” to “ample liquidity and widespread application,” Hong Kong is brewing a critical upgrade.

Completed Regulatory Infrastructure, Why Shift to Commercialization and Application

The logic behind this shift is very clear: regulatory frameworks are just the foundation; the real value lies in application implementation. Hong Kong has put considerable effort into virtual asset regulation over the past few years, establishing a relatively clear rule system. But clear rules do not necessarily mean an active market, nor do they mean becoming a true global virtual asset hub.

According to the latest news, the Hong Kong Securities and Futures Professionals Association has also submitted opinions to the government regarding the OECD crypto asset reporting framework, reflecting a move toward more refined regulation. The association supports mandatory registration and expanding the scope of trading reports but also recommends reducing requirements for unreported activities and strengthening personal data protection. This shows that Hong Kong is seeking a balance—meeting international regulatory standards while leaving room for market development.

Four Paths to Commercialization and Application

How exactly will the commercialization and application be promoted? The Hong Kong Securities and Futures Professionals Association has provided a clear direction:

• Facilitate liquidity in the RWA secondary market, enabling real assets to truly become liquid through tokenization
• Accelerate product approval processes, shortening the cycle for new product launches
• Introduce international liquidity to attract global capital participation
• Strengthen professional training for industry practitioners to improve industry standards

These four paths support each other. Liquidity is the lifeblood of the market; no matter how good a product is, it cannot survive without liquidity. Faster product approval means innovation can be implemented more quickly. Introducing international liquidity is key for Hong Kong to become a global center. Professional training may seem fundamental, but a professional team is the core of long-term competitiveness.

Connecting to the National Strategy for a Bigger Picture

This is not just about Hong Kong. The Hong Kong Securities and Futures Professionals Association explicitly states that it aims to align with the country’s “14th Five-Year Plan” for financial opening and digital economy strategies. This means that Hong Kong’s virtual asset center development has been incorporated into national strategic planning.

From clear regulation to widespread application, Hong Kong is upgrading from a “rule maker” to an “ecosystem builder.” The significance of this upgrade is not only local but also aligned with global standards, competing for influence and centrality in the virtual asset field.

Summary

Hong Kong’s virtual asset development has moved beyond the “from nothing to something” regulatory construction phase and is now entering the “from clarity to activity” application phase. The February 25 fiscal budget will serve as an important window to observe how the Hong Kong government supports this transition at the policy level. The next focus should be on the specific progress of these four paths and whether key areas like RWA liquidity and product approval can truly accelerate. The competition to become a virtual asset hub is no longer about rules but about application, liquidity, and ecosystem. Hong Kong’s next steps in execution will determine whether it can truly become a global virtual asset center.