Edison Chan: «Regulation Unlocks Real Demand for Crypto»

Why It Matters

Comprehensive regulation provides the institutional safeguards needed for Asian private‑wealth investors to allocate to digital assets, expanding the market size and attracting global crypto firms to Hong Kong.

Key Takeaways

• Hong Kong's Stablecoins Ordinance licenses HSBC and Anchorpoint as first issuers
• Expanded licensing will cover OTC dealers, custodians, advisers, and managers
• Institutional demand in APAC rises as regulatory safeguards improve
• Framework mirrors EU's MiCAR, signaling global convergence on crypto regulation
• Sygnum plans Hong Kong entry, shifting focus from Singapore

Pulse Analysis

Hong Kong’s regulatory sprint over the past three years has transformed a fragmented crypto landscape into a cohesive, end‑to‑end framework. Beginning with the 2022 Policy Statement on Virtual Assets, the city moved to a licensing regime for virtual‑asset trading platforms in 2023, then introduced the Stablecoins Ordinance in 2025, and now prepares a 2026 bill that will encompass dealers, custodians, advisers and managers. By aligning the Securities and Futures Ordinance with the Anti‑Money‑Laundering and Counter‑Terrorist Financing Ordinance, Hong Kong creates a single supervisory perimeter that mirrors traditional finance, giving firms a clear compliance pathway.

The practical impact on institutional investors is profound. A Sygnum Asia survey shows 90 % of high‑net‑worth respondents view digital assets as essential for long‑term wealth preservation, but they demand regulated execution and custody. The first stablecoin licences granted to HSBC and Anchorpoint demonstrate that major banks can now issue tokenised fiat under strict reserve and redemption rules, while the upcoming licensing of OTC dealers and custodians will eliminate counter‑party risk that has kept capital on the sidelines. Wealth managers and family offices can now integrate crypto alongside equities and bonds, expanding product offerings and enhancing portfolio diversification.

Globally, Hong Kong’s approach converges with the EU’s MiCAR, reflecting a broader shift toward ecosystem‑wide oversight. The city’s measured sequencing—platforms first, then institutional‑grade products—has attracted attention from firms like Sygnum, which is considering a Hong Kong foothold to serve APAC clients more directly. As the 2026 bill passes, Hong Kong is poised to become a premier hub for regulated digital‑asset activity, offering the institutional grade safeguards that investors worldwide now expect.