Hong Kong Digital Asset Market Thrives as Government to Release Second Policy Declaration

Hong Kong's digital asset market is entering an important phase of development. Financial Secretary Paul Chan recently announced that the Hong Kong Special Administrative Region government will publish its second policy declaration on digital assets, clearly outlining its future development vision and promoting Hong Kong as an international digital asset financial center, thereby solidifying its position as a global digital finance hub.

Since the release of the first policy declaration in 2022, Hong Kong's digital asset ecosystem has rapidly expanded: ten virtual asset trading platforms have been licensed, with another eight applications currently under review. In 2024, the local banking sector's digital asset trading volume is expected to reach HKD 17.2 billion, with custodial assets surpassing HKD 5.1 billion. The Hang Seng Index has increased by approximately 20% over the year, reflecting the growth of new ventures and net wealth accumulation.

At the same time, the "Stablecoin Regulation" will come into effect on August 1, 2025, establishing a licensing system for fiat-backed stablecoins and a clear regulatory framework. The regulation stipulates that any entity issuing fiat-pegged stablecoins or promoting related businesses in Hong Kong must apply for a license. It sets a minimum capital requirement of HKD 25 million and mandates that reserve assets be independently custodied and maintained for high liquidity, ensuring the issuer's ability to redeem. More openly, it allows licensed issuers to choose from various fiat currencies, such as the US dollar, euro, and Japanese yen, to serve as the pegged currency, attracting participation from international institutions and facilitating innovations in cross-border payments. The regulation also requires applicants to submit detailed business plans explaining how their stablecoins will address pain points in the real economy and promote financial innovation for tangible economic services.

In this context, FGA Trust in Hong Kong leverages advanced technology and strict compliance to provide secure and efficient digital asset management services. FGA Trust utilizes blockchain, artificial intelligence, and big data to create transparent and convenient digital asset custody solutions. As a licensed trust institution, FGA Trust strictly adheres to regulatory requirements and ensures the safety of client assets. The company collaborates with leading global banks to support multi-currency offshore custody, meeting the needs for cross-border investment and global asset allocation. It has innovatively launched asset-backed credit card services to help clients manage funds flexibly using digital assets. By integrating digital assets with traditional wealth management, FGA Trust constructs a diversified digital trust ecosystem, with operations in international financial centers such as Hong Kong, Singapore, and Dubai, leveraging a strong network of partnerships to assist clients in achieving global wealth distribution.

With its professional expertise and innovative capabilities, FGA Trust has been awarded the 2025 WealthBriefingAsia Digital Asset Service Award, solidifying its position as a leading digital asset trust service provider in Hong Kong, helping clients preserve and grow their wealth. FGA Trust will actively respond to Hong Kong's digital asset policies and the Stablecoin Regulation, promoting compliant development and supporting clients in legal operations.