Hong Kong will table a bill this year to license virtual asset dealing, custody, advisory and management services.

Christopher Hui, Secretary for Financial Services and the Treasury, set out the plan to lawmakers.

It forms part of the city’s first five-year plan and the 2026 Policy Address.

Hui said both documents shift financial policy from scale to core functions, such as serving the real economy.

In addition, his bureau and the Hong Kong Monetary Authority (HKMA) are studying legal changes to tackle scams.

The aim is to push technology and telecoms firms to detect and remove more scam content. This includes content made with AI.

Meanwhile, the HKMA and the People’s Bank of China are in talks to improve their currency swap line.

The HKMA plans to launch a seven-day offshore RMB liquidity tender. It will also study short-term offshore RMB debt.

From November, all three HKEX clearing houses will accept Northbound Bond Connect bonds as collateral.

The government will explore using RMB for some public spending in suitable dealings with the Mainland.

However, Hui stressed that spending will remain mainly in Hong Kong dollars. He added that the currency and its peg will not be affected.

Hong Kong’s central gold clearing and settlement system will start in the first quarter of 2027.

HKEX will release details this year of a new gold futures contract priced in RMB. The contract will be settled by physical delivery.

A bill due by year end would offer tax relief to selected firms in priority industries. These firms would pay a 5% rate or half the standard rate for up to five years.

Featured image: Edited by Fintech News Hong Kong, based on image by Financial Services and the Treasury Bureau (FSTB) via LinkedIn and ImageFlow via Magnific.