PANews reported on February 26 that according to a Hong Kong government news release, Hong Kong Financial Secretary Paul Chan announced in the 2025-26 Budget that he would soon issue a second policy statement on the development of virtual assets, exploring how to combine the advantages of traditional financial services with technological innovation in the field of virtual assets, and improve the security and flexibility of real economic activities. It will also encourage local and international companies to explore the innovation and application of virtual asset technology. Paul Chan reiterated that the Hong Kong government will consult on the licensing system for virtual asset over-the-counter transactions and custody services within the year. In terms of stablecoin regulation, the Hong Kong government has submitted a draft bill to the Legislative Council. After the bill is passed, the HKMA will review the license application as soon as possible.