Why Regulation Could Hold the Key to Hong Kong’s Virtual Assets and Tokenized Money’s Future
HKUST IEMS Thought Leadership Brief No. 103
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The Hong Kong Government announced its Policy Statement 2.0 on the Development of Digital Assets in Hong Kong on 26 June 2025, representing a watershed in the City’s virtual asset market development. Since 2022, Hong Kong has spearheaded the development of virtual asset market and explored different regulatory frameworks for investors to issue and trade virtual assets. Six virtual asset spot exchange traded funds are now listed on the Hong Kong Stock Exchange, with a combined market capitalization of HK$2.4 billion. The Securities and Futures Commission has currently authorized ten platforms to manage the exchange of virtual assets and continues to receive and assess license applications.
About the Author
Kar Yan Tam is Vice-President for Administration and Business and Chair Professor of Information Systems, Business Statistics and Operations Management at the Hong Kong University of Science and Technology (HKUST). Prof Tam is known for his contributions in information systems and the diffusion of innovations in organizations. According to Google Scholar, his publications have received over 23,000 citations. Prof Tam is currently serving on the editorial board of a number of academic journals. Prof Tam also plays an active role in public services. He is a member of the Hong Kong Exchange Fund Advisory Committee of the Hong Kong Monetary Authority and the Chairperson of the Hong Kong Committee for the Pacific Economic Collaboration.
Christy Yeung is a seasoned education administrator, researcher and project management consultant, specializing in managing complex and large-scale initiatives. Her work centers on talent development and policy research in emerging sectors, fostering collaboration among academia, government, and industry to strengthen Hong Kong’s capabilities as an international financial center and address talent gaps in the financial sector. Previously as Head of Fintech and Green Finance Projects of The Hong Kong University of Science and Technology School of Business and Management (HKUST Business School), Christy led research and engagement on fintech, insurtech, regtech, and green and sustainable finance, alongside talent development programs and industry partnerships. She has authored reports and insights that inform policy and practice, emphasizing innovation-driving growth and workforce readiness.
Wai Nok Yim is Senior Manager (Data Analytics) at The Hong Kong University of Science and Technology (HKUST). He holds an MSc in Information Technology from HKUST and MSocSc in Applied Psychology from City University of Hong Kong, and is a graduate member of the Hong Kong Psychological Society. Nok believes that integrating knowledge across technology and behavioral science can drive innovative, human-centered solutions. With expertise in data analysis, machine learning, and web development, he has led a number of initiatives related to fintech, artificial intelligence (AI), and virtual assets, including a fintech talent exploration project, where he oversaw data collection, algorithm design, system architecture, and AI integration. His work bridges technical rigor with practical insights to support research and policy development in emerging sectors.
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