Hong Kong Fintech Ecosystem Report

PART I: HONG KONG FINTECH AT A GLANCE 19 June 2024 August 2024 August 2024 October 2024 November 2024 November 2024 Janurary 2025 February 2025 The HKMA announced that Project mBridge has reached the Minimum Viable Product stage . Project mBridge is a collaboration between global central banks, including the HKMA and the People's Bank of China (PBoC), aiming to enhance cross-border payments using central bank digital currency (CBDC). The HKMA unveiled Project Ensemble Sandbox to drive tokenization adoption, focusing on four main themes. This milestone marked a significant step forward in the advancement of tokenization in real-world application within the financial sector. The HKMA collaborated with Cyberport to introduce the GenA.I. Sandbox , emphasizing the transformative power of artificial intelligence in finance. The FSTB issued a policy statement on responsible application of artificial intelligence (AI) in the financial market. The HKMA launched the Digital Bond Grant Scheme , which was announced in the 2024 Policy Address. Hong Kong Exchanges and Clearing (HKEX) launched the HKEX Virtual Asset Index Series , offering a reliable benchmark for cryptocurrencies to support Hong Kong's development as Asia's leading digital assets hub. The Securities and Futures Commission (SFC) announced the swift licensing process and revamped second-phase assessment for virtual asset trading platforms. The SFC sets out new roadmap to develop Hong Kong as a global virtual asset hub with 12 major initiatives outlined to enhance the security, innovation and growth of the market under a five-pillar “ASPIRe” roadmap . Under the roadmap, new frameworks for regulating virtual asset over-the-counter and virtual asset custodian services will be developed, while virtual asset product and service offerings will be expanded. Other measures encompass optimization of operational requirements for virtual asset trading platforms, combating illicit activities, investor education and proactive stakeholder engagement. Access: Streamline Market Entry through Regulatory Clarity Safeguards: Optimize Compliance Burdens without Compromising Security Products: Expand Product Offerings and Services Based on Investor Categorization Infrastructure: Modernize Reporting, Surveillance and Cross-Agency Collaboration Relationships: Empower Investors and Industry through Education, Engagement and Transparency