Hong Kong's 2026-27 Budget sets licensing and tax rules for digital asset expansion

Hong Kong's 2026-27 Budget, presented by Financial Secretary Paul Chan, outlines a new licensing regime in 2026 for digital asset dealing and custodian service providers, alongside tax concessions covering digital assets. The plan builds on 2025 consultations and the Stablecoins Ordinance, and includes AI-focused initiatives and a Digital Asset Accelerator as part of a broader strategy to strengthen the city's role in global finance and technology. Changes to tax laws in the first half of 2026 will also make family office investments in digital assets, precious metals, and commodities eligible for specific tax benefits.