Policy Statement on the Synergistic Development of Finance and Technology
On January 21, Hong Kong Financial Secretary Paul Chan stated during a special address at the World Economic Forum Annual Meeting in Davos that finance and technology can mutually reinforce and empower one another. Using digital assets as an example, he noted that such financial innovations can enhance transparency, efficiency, inclusiveness, and risk management in financial services, while also more effectively channeling capital into the real economy. At the same time, the financial system itself serves as a critical foundation for supporting technological development and the commercialization of innovation.
Hong Kong’s Overall Approach to Digital Asset Development
Paul Chan emphasized that, as an international financial center, Hong Kong has adopted a proactive yet prudent approach to developing digital assets. The city consistently adheres to the principle of “same activity, same risk, same regulation,” with the aim of promoting responsible market development and long-term sustainability. This regulatory philosophy seeks to strike a balance between encouraging innovation and safeguarding market order and investor protection.
Virtual Asset Licensing and Stablecoin Planning
In terms of concrete progress, Hong Kong has issued licenses to 11 virtual asset trading platforms since 2023, with the relevant regulatory framework gradually taking shape. Paul Chan also revealed that regulators are expected to issue stablecoin-related licenses later this year, further strengthening key components of the digital asset ecosystem. This step is widely viewed as an important milestone in Hong Kong’s institutional development of digital finance.
Tokenization Practices and Regulatory Sandboxes
Beyond trading and payments, the Hong Kong SAR Government has also taken the lead in practical tokenization initiatives. Authorities have issued three batches of tokenized green bonds, with a total issuance size of approximately USD 2.1 billion, demonstrating the practical potential of blockchain technology in traditional financial instruments. At the same time, the introduction of regulatory sandbox mechanisms provides financial institutions and technology firms with a relatively controlled environment in which to test innovative applications.
The Practical Significance of Compliance and Risk Management
As digital assets and tokenized projects increasingly enter the mainstream financial system, requirements for transparency, traceability, and risk control are rising in parallel. In this context, continuous monitoring of on-chain transactions and fund flows is becoming an important component of institutions’ efforts to strengthen internal compliance and risk governance. In practice, some participants leverage on-chain monitoring systems such as Trustformer KYT to conduct structured analysis of relevant activities, supporting compliance reviews and risk assessments.
Conclusion
Judging from both policy statements and concrete measures, Hong Kong is seeking to strike a balance between financial innovation and prudent regulation. As digital asset–related frameworks continue to mature, their impact on the efficiency, transparency, and risk management capabilities of the financial system will require ongoing observation through broader real-world application.