Hong Kong, one of the world’s leading financial hubs, is reaffirming its commitment to cryptocurrency and blockchain innovation as it faces rising competition from the crypto-friendly United Arab Emirates (UAE). During Consensus Hong Kong, senior officials and industry leaders addressed how the city plans to maintain its position as a global digital asset center despite aggressive moves by Dubai and Abu Dhabi.
Joseph Chan, Under Secretary for Financial Services and the Treasury, emphasized that Hong Kong’s biggest advantage lies in its transparent and predictable crypto regulation. He noted that the government has consistently supported the development of the digital asset industry, even during market downturns. According to Chan, regulatory certainty and a stable policy environment differentiate Hong Kong from other jurisdictions that may change direction during periods of crypto market volatility.
Johnny Ng, founder of Web3 investment firm Goldford Group, highlighted the competitive pressure from the UAE. He pointed out that both Dubai and Abu Dhabi have established comprehensive regulatory frameworks for virtual assets under dedicated authorities. Ng also referenced South Korea’s centralized oversight of cryptocurrency, suggesting that Hong Kong could benefit from a similar unified regulatory structure to streamline digital asset governance and enhance international collaboration.
Hong Kong’s mandatory licensing regime for virtual asset trading platforms (VATPs), introduced two and a half years ago, has already approved 11 licensed operators. Meanwhile, the city’s stablecoin regulatory framework, launched last August, is expected to issue its first batch of licenses in the first quarter of this year. Upcoming legislation covering digital asset dealers and custodians is also scheduled to be presented later this year, following public consultations and legislative review.
Chan stressed that while the legislative process may appear lengthy, it ensures industry input and prevents regulatory surprises. By maintaining a clear and consistent approach to crypto regulation, Hong Kong aims to solidify its role as a trusted global hub for blockchain technology and digital assets while competing effectively with the rapidly expanding UAE crypto market.
