Hong Kong is doubling down on its crypto and fintech ambitions with a clear message to the global market: it wants to become the go-to hub for cross-border digital asset management, and it’s giving itself two years to get there. Backed by a surge in fund registrations and a regulatory push to make crypto investing safer and more accessible, Hong Kong is rapidly positioning itself as a launchpad for digital finance in Asia and possibly the world. Its ambition is to go beyond being just another crypto-friendly jurisdiction. In a recent speech delivered at the Wealth Management Expo 2025, Paul Chan, Hong Kong’s financial secretary, said that in March 2025, the number of registered funds in the jurisdiction reached 976, with an annual net inflow of more than $44 billion, an increase of 285%. In addition to that, he said, “Family offices in Hong Kong are also booming and are expected to increase from 2,700 to 3,000 soon. According to a survey in 2024, the funds managed by Hong Kong’s treasury management industry exceeded US$4 trillion. We expect Hong Kong to become the world’s number one cross-border asset management center within two to three years.” According to him, the market has recently shown great interest in digital assets, especially the issuance of stablecoins. Chan stated, “We have also just completed the legislation of stablecoins, which will come into effect on August 1, making Hong Kong one of the first jurisdictions in the world to establish a statutory regulatory framework for stablecoins.” Hong Kong advertises license to scale and infrastructure for innovation A key part of Hong Kong’s acceleration is the provision of the infrastructure to support its goals. The Hong Kong Monetary Authority (HKMA) is running Project Ensemble, a tokenization sandbox aimed at modernizing interbank settlements and testing digital representations of assets. The plan includes using tokenized vehicles for fund distribution, enabling cross-border investments with near-instant finality, and reducing costs across the board for institutional players. On the regulatory front, Hong Kong isn’t waiting around. The city has established dual licensing regimes for virtual asset trading platforms (VATPs) that cover both retail-facing crypto exchanges and platforms trading tokenized securities. So far, ten digital asset platform licenses have been granted, with eight more currently under review. This includes big names from Asia and emerging players looking to scale globally. In April 2024, Hong Kong also became one of the first jurisdictions to approve spot Bitcoin and Ethereum ETFs. And with the Stablecoin Ordinance set to take full effect in August 2025, platforms looking to issue fiat-backed stablecoins must now meet reserve, audit, and redemption standards, further de-risking the digital asset ecosystem for mainstream finance. Global race for digital asset supremacy To sweeten the deal, the region is also exploring crypto tax exemptions for hedge funds, family offices, and private equity managers. That could be a game-changer in attracting fund domiciles and crypto-focused capital managers who’ve grown wary of stricter regimes in the U.S. and parts of Europe. Hong Kong isn’t alone in chasing the digital asset crown. Singapore, Dubai, and the UK are all positioning themselves as next-generation finance hubs. But where others are leaning on crypto licensing, Hong Kong is going a step further, building deep infrastructure for central bank money integration and regulated stablecoins. The secretary closed his speech by saying, “Hong Kong is a free and open, international metropolis with internal and external connections and opportunities everywhere. As long as we identify the big trends, adapt flexibly, continue to reform and innovate, we will surely be able to find new markets, new opportunities, new funds, and achieve more vigorous development,” signaling that they are open for business and investors. Also, the city’s proximity to mainland China adds another layer of intrigue. With Beijing’s ban on public crypto trading still firmly in place, Hong Kong is being quietly used as a gateway for Chinese capital to interact with global digital finance, albeit within a tightly regulated sandbox. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More
