Industry leaders gather as city advances stablecoin licensing despite Beijing’s crypto reservations
Major Conference Highlights Regional Digital Asset Ambitions
Hong Kong’s cryptocurrency and blockchain community converged for Consensus Hong Kong 2026, the second annual edition of what has quickly become known as the “Super Bowl” of the industry in Asia. With more than 11,000 attendees visiting booths and stages across two days of programming, the conference provided a platform for industry luminaries to present an optimistic outlook for digital assets in the region despite significant headwinds including Bitcoin price volatility and ongoing regulatory uncertainties surrounding Beijing’s stance on cryptocurrency activities. The event took place at a pivotal moment for Hong Kong’s digital asset ecosystem, as local authorities push forward with ambitious plans to establish the city as a major cryptocurrency hub while navigating the complex relationship with mainland China, where cryptocurrency trading and most related activities remain strictly prohibited. The conference featured high-level policy discussions, technical presentations, and networking opportunities covering institutional adoption, tokenization, regulatory trends, infrastructure development, and future technology applications. Speakers included representatives from major platforms and institutions including Binance, Blockstream, Circle, Coinbase, Google, Pantera, Robinhood, and the Solana Foundation, reflecting the conference’s ability to attract global industry leaders.
Stablecoin Framework Advances Despite Mainland Concerns
One of the most significant developments announced during the conference period was the Hong Kong Monetary Authority’s commitment to issue an initial batch of stablecoin licenses by March 2026, despite reported resistance from Beijing authorities. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, told a Legislative Council meeting that the authority was reviewing an initial tranche of 36 stablecoin issuer applications and hoped to make licensing decisions by March. This timeline represents a significant milestone in Hong Kong’s efforts to create a regulated framework for digital assets while maintaining distinct policies from mainland China. Stablecoins, which are cryptocurrencies designed to maintain stable value by pegging to traditional currencies or other assets, have emerged as crucial infrastructure for digital asset markets. More than 99 percent of existing stablecoins are denominated in US dollars, raising concerns among some regulators about monetary sovereignty and potential capital control evasion. Hong Kong’s licensing framework, which took effect in August 2025, aims to create a regulated environment that balances innovation with consumer protection and financial stability. The framework requires issuers to meet stringent capital, governance, and operational requirements, while providing regulatory clarity that has been lacking in many other jurisdictions. The advancement of stablecoin licensing despite Beijing’s general prohibition on cryptocurrency activities demonstrates Hong Kong’s unique position as a regulatory laboratory where experimentation can proceed in controlled environments. However, past experience suggests that innovation must reinforce rather than circumvent central oversight. The Financial Times previously reported that Chinese tech giants including Ant Group and JD.com suspended plans for a Hong Kong stablecoin after Beijing intervention, illustrating the political constraints that operate even in this autonomous jurisdiction.
Perpetual Contracts and Market Structure Developments
During the conference, Securities and Futures Commission Chief Executive Julia Leung unveiled plans for a new framework that would allow licensed trading platforms to offer perpetual contracts on cryptocurrencies including Bitcoin and Ethereum. Perpetual contracts are leveraged derivative products that track underlying assets without expiration dates, and they have become enormously popular in offshore cryptocurrency markets. Until now, Hong Kong traders seeking access to these products have primarily used offshore exchanges operating outside local regulatory oversight. The proposed framework would limit initial access to professional investors only, with strict risk controls in place. This cautious approach reflects regulatory authorities’ desire to enable market development while protecting retail investors from products they may not fully understand. The SFC also announced intentions to permit margin financing, allowing brokers to offer financing to clients with strong credit profiles using securities and cryptocurrency as collateral. Additionally, licensed platforms would be permitted to operate affiliated market-making units under strict rules designed to prevent conflicts of interest and market manipulation. These initiatives represent significant steps toward building a complete virtual asset ecosystem in Hong Kong, complementing existing approvals for spot Bitcoin and Ethereum exchange-traded funds that launched in April 2024. The regulated derivatives and financing tools aim to provide institutional investors with the full suite of products they require while maintaining the compliance frameworks that many large financial institutions demand before entering cryptocurrency markets.
Navigating Geopolitical and Regulatory Complexity
Hong Kong’s cryptocurrency ambitions face inherent tensions given Beijing’s hardline stance on digital assets. In February 2026, just before the Consensus conference, Chinese authorities issued new regulatory guidance tightening oversight and clarifying that virtual currency-related activities remain prohibited for mainland residents and institutions. The notice reinforced existing bans while establishing pathways for tightly regulated, permissioned tokenization of real-world assets backed by onshore collateral, suggesting Beijing’s interest lies in controlled applications of blockchain technology rather than open cryptocurrency markets. For Hong Kong, this creates a delicate balancing act. The city must develop its digital asset sector sufficiently to attract international firms and maintain its competitive position against rivals like Singapore and Dubai, while avoiding policies that Beijing might view as enabling capital flight or undermining monetary sovereignty. The strategy appears to involve creating highly regulated channels for institutional participation while maintaining strict controls that prevent retail speculation and cross-border capital flows that circumvent mainland restrictions. Industry participants at Consensus Hong Kong expressed cautious optimism about this approach, viewing Hong Kong’s regulatory clarity as a significant advantage even if it means operating within constraints. The alternative, operating in completely unregulated environments, creates legal uncertainties and banking access challenges that many institutional players find unacceptable. Whether Hong Kong can successfully navigate these competing pressures to establish itself as a leading digital asset hub remains an open question that will likely be answered over the coming years as regulatory frameworks are implemented and tested in practice.
Hoi Lam
Lifestyle, Gender & Society Journalist, Apple Daily UK
Contact: hoilam@appledaily.uk
Hoi Lam is a lifestyle and society journalist whose work focuses on gender issues, family dynamics, and everyday social change within Chinese and diaspora communities. She completed her journalism education at a leading Chinese journalism school, where she specialized in feature writing, interview techniques, and ethical storytelling.
Her reporting career includes contributions to Apple Daily and other liberal Chinese magazines and newspapers, covering topics such as women’s rights, work-life balance, generational change, and evolving social norms. Hoi Lam’s work is grounded in firsthand interviews and contextual research, ensuring authenticity and factual integrity.
She brings newsroom experience in balancing human-interest storytelling with rigorous fact-checking and responsible framing. Her writing avoids sensationalism and prioritizes accurate representation of sources and lived experiences.
Hoi Lam’s authority is reinforced by sustained publication within reputable media outlets and compliance with editorial review and correction standards. She is trusted by editors for her careful handling of sensitive subjects and ethical clarity.
At Apple Daily UK, Hoi Lam contributes credible, experience-based journalism that documents social realities with accuracy, empathy, and professional discipline.
