HKSFPA Commentary: Hong Kong's Virtual Assets Need to Shift Towards Commercialization in the "Post-Licensing Era," Warning of "Stagnation or Regression" Risk

The Hong Kong Securities and Futures Professionals Association (HKSFPA) submitted a budget proposal to the government, stating that Hong Kong's virtual asset market has entered a "post-licensing era," where licenses are merely an entry ticket, and liquidity and practical application are key. The association recommends that the government shift its focus in the 2026-27 budget from "regulatory infrastructure" to "commercialization," including: accelerating token listing approvals, introducing international liquidity, and promoting the development of the RWA secondary market; encouraging licensed platforms to connect with traditional securities firms through integrated accounts to activate existing funds; and deepening the Hong Kong Monetary Authority's Project Ensemble to promote the application of tokenized deposits and stablecoins. The proposal also points out that if there is a prolonged period of "licenses without market activity," licensed platforms may experience a wave of mergers and acquisitions or exits, threatening Hong Kong's status as a virtual asset center with a "either advance or retreat" risk.