Hong Kong’s Iron Regulator Gets Three More Years to Shape Global Crypto Rules

Hong Kong’s Securities and Futures Commission reportedly plans to extend Chief Executive Officer Julia Leung’s tenure by three years.

The extension, which would keep Leung in the role until the end of 2028, comes as the regulator advances its oversight of virtual asset markets and works to strengthen Hong Kong’s position as an international financial center.

Stablecoin Regulation Takes Effect

The SFC has successfully implemented Hong Kong’s comprehensive regulatory framework for virtual assets. On August 1, 2025, the territory’s stablecoin ordinance came into force, establishing a licensing regime for issuers of fiat-referenced stablecoins. The Hong Kong Monetary Authority oversees the framework, which requires stablecoin issuers to obtain licenses and maintain full backing of reserve assets.

Under the new regime, stablecoins must always be fully backed by reserve assets, with additional over-collateralization required to cover market risks. The licensing application period closed on September 30, 2025, with the first licenses expected to be granted in early 2026. The framework represents a significant step in Hong Kong’s strategy to create a regulated environment for digital assets while maintaining investor protection standards.

The regulatory approach seeks to balance innovation with safeguards. The HKMA and SFC have emphasized that the framework aims to facilitate the development of the stablecoin market in Hong Kong while addressing potential risks to monetary and financial stability. Industry participants have noted that the stringent requirements place Hong Kong among jurisdictions with comprehensive stablecoin oversight.

Market Oversight and Investor Protection

In August 2025, the SFC and HKMA issued a joint statement addressing market movements related to stablecoin-associated stocks.

“Recent share price movements associated with the stablecoin concept underscore the importance for investors to be clear-minded about the risks involved and the potential financial losses from making relevant investments,” Leung said in the statement. She also cautioned investors to “be wary of unsubstantiated claims, particularly those appearing on social media.”

Leung’s current term is scheduled to expire on December 31, 2025. She became the SFC’s first female CEO in January 2023 and has overseen significant developments in Hong Kong’s digital asset regulation since then. The tenure extension reflects government confidence in her leadership and comes during a period of regulatory transformation in financial services.

The SFC has implemented a licensing regime for virtual asset trading platforms. Operators must meet stringent standards for custody, cybersecurity, and investor protection. This framework has established Hong Kong as a pioneer. The territory is among the first major financial centers to introduce comprehensive cryptocurrency exchange regulation. The approach has attracted domestic and international virtual asset service providers seeking to operate under a clear regulatory structure.

Hong Kong has also seen a resurgence as a leading venue for initial public offerings, with financial leaders highlighting momentum in attracting listings. Expanding virtual asset oversight has encouraged partnerships with industry participants, including tokenized asset firms. The SFC’s regulatory initiatives under Leung’s leadership have focused on supporting market development. They also maintain oversight standards consistent with Hong Kong’s status as an international financial hub.