Hong Kong’s Iron Regulator Gets Three More Years to Shape Global Crypto Rules
Hong Kong’s Securities and Futures Commission reportedly plans to prolong Chief Executive Officer Julia Leung’s tenure by three years.
The extension, which might preserve Leung within the function till the top of 2028, comes because the regulator advances its oversight of digital asset markets and works to strengthen Hong Kong’s place as a world monetary heart.
Stablecoin Regulation Takes Effect
The SFC has efficiently applied Hong Kong’s complete regulatory framework for digital property. On August 1, 2025, the territory’s stablecoin ordinance got here into pressure, establishing a licensing regime for issuers of fiat-referenced stablecoins. The Hong Kong Monetary Authority oversees the framework, which requires stablecoin issuers to acquire licenses and preserve full backing of reserve property.
Under the brand new regime, stablecoins should all the time be totally backed by reserve property, with extra over-collateralization required to cowl market dangers. The licensing utility interval closed on September 30, 2025, with the primary licenses anticipated to be granted in early 2026. The framework represents a major step in Hong Kong’s technique to create a regulated setting for digital property whereas sustaining investor safety requirements.
The regulatory strategy seeks to steadiness innovation with safeguards. The HKMA and SFC have emphasised that the framework goals to facilitate the development of the stablecoin market in Hong Kong whereas addressing potential dangers to financial and monetary stability. Industry individuals have famous that the stringent necessities place Hong Kong amongst jurisdictions with complete stablecoin oversight.
Market Oversight and Investor Protection
In August 2025, the SFC and HKMA issued a joint statement addressing market actions associated to stablecoin-associated shares.
“Recent share value actions related to the stablecoin idea underscore the significance for traders to be clear-minded concerning the dangers concerned and the potential monetary losses from making related investments,” Leung stated within the assertion. She additionally cautioned traders to “be cautious of unsubstantiated claims, significantly these showing on social media.”
Leung’s present time period is scheduled to expire on December 31, 2025. She turned the SFC’s first feminine CEO in January 2023 and has overseen vital developments in Hong Kong’s digital asset regulation since then. The tenure extension displays authorities confidence in her management and comes throughout a interval of regulatory transformation in monetary providers.
The SFC has applied a licensing regime for digital asset buying and selling platforms. Operators should meet stringent requirements for custody, cybersecurity, and investor safety. This framework has established Hong Kong as a pioneer. The territory is among the many first main monetary facilities to introduce complete cryptocurrency change regulation. The strategy has attracted home and worldwide digital asset service suppliers looking for to function beneath a transparent regulatory construction.
Hong Kong has additionally seen a resurgence as a number one venue for preliminary public choices, with monetary leaders highlighting momentum in attracting listings. Expanding digital asset oversight has inspired partnerships with business individuals, together with tokenized asset corporations. The SFC’s regulatory initiatives beneath Leung’s management have centered on supporting market improvement. They additionally preserve oversight requirements in line with Hong Kong’s standing as an international financial hub.
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