Reports suggest that Julia Leung, the Chief Executive Officer of Hong Kong’s Securities and Futures Commission (SFC), is expected to have her leadership extended for an additional three years.
This extension, which would keep Leung at the helm until the close of 2028, coincides with the SFC’s ongoing efforts to refine its supervision of digital asset markets. It also aligns with the broader goal of reinforcing Hong Kong’s position as a premier global financial center.
Stablecoin Regulation Takes Effect
The SFC has successfully put in place a complete regulatory system for virtual assets in Hong Kong. Beginning August 1, 2025, the region’s stablecoin ordinance has been in effect. This establishes a licensing framework for entities that issue stablecoins pegged to fiat currencies. The Hong Kong Monetary Authority (HKMA) is in charge of this structure. It makes sure stablecoin issuers have licenses and keep enough reserves to cover their liabilities.
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According to the new rules, stablecoins must always be backed by assets of high quality and liquidity. Extra funds are also required to reduce market risks. The deadline to apply for a license was September 30, 2025. The first licenses are expected to be granted in early 2026. These rules are an important part of Hong Kong’s strategy to build a controlled space for virtual assets, while upholding high requirements for protecting investors.
The regulatory strategy aims to strike a balance between enabling innovation and ensuring protection. The HKMA and SFC have both emphasized that the framework aims to support the growth of the stablecoin market in Hong Kong, all while dealing with any risks to financial security. Industry experts noted that the strict rules have placed Hong Kong as one of the jurisdictions with complete stablecoin regulation.
Market Oversight and Investor Protection
In August 2025, the SFC and HKMA released a joint statement, which addressed movements in the market related to stocks associated with stablecoins.
“Recent increases in share prices related to the stablecoin concept show the importance of investors being clear-minded about the potential risks and the risk of losing money when making related investments,” Leung said in the statement. She also said for investors to “be wary of unsupported claims, especially those that can be found on social media.”
Leung’s current term is set to finish on December 31, 2025. She became the SFC’s first female CEO in January 2023 and has been in charge of major changes to Hong Kong’s rules for digital assets. The extension of her leadership suggests that the government has confidence in her. It also comes at a time when financial services are seeing regulatory changes.
The SFC now has a licensing system for virtual asset trading platforms. Those running the platforms must meet strict rules on custody, cyber security, and the security of investors. Because of this framework, Hong Kong is seen as a leader in the field. The territory is among the first big financial hubs to set comprehensive regulations for cryptocurrency exchange. This strategy has attracted both local and global virtual asset service providers who want to work within a clear regulatory framework.
Hong Kong has also seen a comeback as a top place for initial public offerings (IPOs), with financial leaders pointing to progress in attracting new listings. Enhancing supervision of virtual assets has promoted collaboration with industry participants, including companies working with tokenized assets. Under Leung’s direction, the SFC’s regulatory efforts have concentrated on promoting market development, while maintaining oversight standards in line with Hong Kong’s status as a key international financial hub.