Category: MIL-OSI

Speech by FS at Consensus Hong Kong 2026 (English only) (with photos/video) 
Michael (Chairman of Consensus, Mr Michael Lau), Tom (Chief Executive Officer of Bullish Group, Mr Tom Farley), Jay (President of CoinDesk, Mr Jay Yarow), industry leaders and innovators, friends from around the world,
 
     It is a pleasure to join you all at the Consensus Conference in Hong Kong for the second consecutive year. Let me begin by thanking CoinDesk for once again choosing Hong Kong to host this iconic event. This conference has become a powerful platform in Asia for exploring the cutting-edge trends in the Web3 space and for fostering partnerships and collaboration.
 
Evolving global trends
 
     Globally, the application of Web3 technologies in finance continues to broaden in both scope and sophistication. A few trends are more prominent. The first is tokenisation of RWAs (real-world assets). In a growing number of markets, tokenisation initiatives are moving from “proof of concept” to real-word deployment, supported by more institutional adoption. Government bonds, money market funds and other more traditional financial instruments are increasingly being issued or mirrored on-chain, using digital ledgers to enhance settlement efficiency, enable fractional ownership and unlock liquidity in assets that have traditionally been less liquid.
 
     Hong Kong is one of the pioneers in this space. The HKSAR Government was the first in the world to issue tokenised government green bonds. Last year, we build on this foundation by issuing the world’s largest digital green bond, with a multi-currency offering of HK$10 billion. Meanwhile, financial institutions are becoming more receptive to digital assets. By the end of last year, banks in Hong Kong held over HK$14 billion in digital assets under custody, a year-on-year increase of about 180 per cent. Banks have also begun offering tokenised deposit services, with the total value of such deposits reaching HK$29 billion by the end of last year.
 
     The second trend is a related and evolving one: that is, the interaction between “TradFi” (traditional finance) and “DeFi” (decentralised finance). Traditional institutions are now importing DeFi mechanisms into their own architectures – such as automated market-making, programmable liquidity pools and the use of on-chain collateral – to support more efficient trading, funding and settlement. At the same time, DeFi is coming under growing regulatory and supervisory pressure in multiple jurisdictions, particularly in relation to anti-money laundering, investor protection, and broader financial stability. There have been growing calls for DeFi to be brought under existing or emerging digital-asset regulatory frameworks.
 
     The third trend is the growing intersection between AI and digital assets. AI systems are being designed to interact with tokenised money and smart contracts, enabling the autonomous execution of certain transactions and settlements. At the same time, AI tools are making digital asset markets more intelligent, efficient and data-driven. As AI agents become capable of making and executing decisions independently, we may begin to see the early forms of what some call the “machine economy”: where AI agents can hold and transfer digital assets, pay for services, and transact with one another on chain. While this shift could deliver substantial efficiency gains, it also raises important questions around AI governance, accountability, and cybersecurity.  
 
Hong Kong’s approach
 
     Against this backdrop of rapid global experimentation, what are we doing in Hong Kong? We are charting our course, leveraging our unique strengths as an international financial centre to stay at the forefront of innovation and keep pace with emerging developments. A few principles are guiding our strategy.  
 
     First, under the “one country, two systems” framework, Hong Kong is free to explore financial innovation, including in digital assets. We stand out as a market with consistent, predictable, forward-looking policies, and a balanced and trusted regulatory framework. We welcome Web3 innovators and institutions from around the world to develop and scale their businesses here.  
 
     At the same time, we recognise that innovation often moves faster than regulation, potentially creating gaps and new risks. We are therefore carefully balancing the promotion of innovation with the need for sound risk management. Our objective is to embrace new technologies while safeguarding investors, consumers and the overall financial stability. The principle of “same activity, same risk, same regulation” continues to underpin the design of our regulatory framework.
 
     Second, we see Web3, blockchain technology and AI as powerful enablers of the real economy, rather than ends in themselves. Our policy focus is therefore on how these technologies can be applied to enhance efficiency, lower costs and support concrete, real-world use cases. Ultimately, our aim is to make financial services more inclusive and accessible, while addressing long-standing pain points in transactions and market operations.  
 
     Third, we are committed to pro-innovation regulation. Our regulators operate with a dual mandate: they not only exercise prudent supervision, but also actively facilitate market and product development. Through mechanisms such as regulatory sandboxes, we support experimentation and, in some cases, co-create solutions in close collaboration with innovators and industry participants.
 
Some latest initiatives
 
     Ladies and gentlemen, with these guiding principles in mind, we are pressing ahead to advance Web3 development in Hong Kong. Let me highlight some of our latest initiatives.   
 
     First, on regulation. We continue to enhance Hong Kong’s regulatory framework for digital assets, including the launch of a regulatory regime for stablecoin issuers in August last year. We see stablecoins as a practical tool for addressing the pain points in the real economy, particularly in payments and settlements. In giving out licences, we ensure that licensees have real-world use cases, a credible and sustainable business model, as well as strong regulatory compliance capabilities. Our strategy is moving forward fast, step by step. Therefore, we plan to issue only a small number of stablecoin issuer licences in the first batch in March this year.  
 
     Meanwhile, we are also finalising the details of a new licensing regime for digital asset dealers and custodian service providers, with the aim of introducing the relevant legislation this summer. Together with the frameworks already in place, this will ensure that our overall regulatory regime comprehensively covers the key nodes of the digital asset ecosystem.
 
     Second, on product innovation and development. We will regularise the issuance of tokenised green bonds. At the same time, we encourage market innovation and nurture the broader ecosystem. For example, building on the Project Ensemble sandbox, Ensemble TX was launched by the HKMA (Hong Kong Monetary Authority) in November last year. It is a new pilot phase that enables faster, more transparent and more efficient settlement of real-value tokenised transactions.
 
     Looking ahead, as the convergence of AI and blockchain continues to accelerate, the Government and our regulators will work with the industry to foster concrete, high-impact use cases, while ensuring that emerging risks are properly identified, monitored and managed. 
 
Concluding Remarks
 
     Ladies and gentlemen, before I close, let me leave you with this message: the Hong Kong SAR Government and our financial regulators fully recognise the need of and are committed to keeping pace with rapid technological change, and building a vibrant digital asset ecosystem here in Hong Kong. We welcome global innovators like you to join us on this journey.
 
     In less than a week, we will celebrate the Chinese New Year. The Year of the Horse symbolises agility, stamina and strength. May I wish you all a prosperous and energetic year ahead. And for those who have travelled from afar, I hope you will take some time to enjoy the festive spirit and unique charm of Hong Kong.
 
     My thanks once again to CoinDesk for hosting this remarkable event in Hong Kong. May this event inspire many more fresh ideas and lasting partnerships. Thank you very much.
Issued at HKT 13:44

Sydney ETO holds reception in Sydney to celebrate Year of the Horse      
     The Director of the Sydney ETO, Mr Ricky Chong, said in his welcoming remarks that Hong Kong and Australia have long shared a dynamic and multifaceted partnership, underpinned by close co-operation in trade, investment, education, cultural exchanges and people-to-people ties. He noted that Hong Kong was Australia’s 15th-largest trading partner and ninth-largest export market last year, with bilateral trade in goods reaching AU$8 billion, while around 200 Australian companies operate in Hong Kong, many using the city as regional headquarters or regional offices.Issued at HKT 14:08

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Office of Licensing Authority of Home Affairs Department steps up enforcement actions against unlicensed and licensed hotels/guesthouses before Chinese New Year holidays (with photo)                
     A spokesman for the OLA said, “Based on intelligence gathered, the OLA carried out surprise inspections on 12 premises throughout the whole operation. Six premises were suspected of operating unlicensed hotels or guesthouses, while three licensed guesthouses were suspected of breaching certain licensing conditions. The OLA will initiate prosecution on cases with sufficient evidence after completion of the investigation.”
      
     The spokesman stressed, “Operating unlicensed hotels or guesthouses is a criminal offence leading to a criminal record upon conviction. According to the Hotel and Guesthouse Accommodation Ordinance, an offender is liable to three years’ imprisonment and a maximum fine of $500,000. A fine of $20,000 for each day can also be imposed during which the offence continues. Moreover, a licensed hotel or guesthouse which contravenes any licensing conditions (e.g. carrying out alteration and addition works without seeking prior approval) is liable to two years’ imprisonment and a maximum fine of $100,000 and two years’ imprisonment. A fine of $10,000 for each day can also be imposed during which the offence continues.”
      
     To enhance deterrence against unlicensed hotels and guesthouses, the Hotel and Guesthouse Accommodation Ordinance was amended in 2020 to empower the Hotel and Guesthouse Accommodation Authority to apply to the court, upon the second conviction within 16 months of operating an unlicensed hotel or guesthouse or the new strict liability offence in respect of the same premises, to issue a closure order to close the premises for six months. As at January 31, the OLA has applied for five closure orders under the Hotel and Guesthouse Accommodation Ordinance from the court, of which three closure orders have been issued by the court.   
      
     Apart from conducting special operations during festive seasons, the OLA also steps up efforts to combat unlicensed guesthouses via online platforms. The OLA has strengthened its intelligence collection by forming a dedicated team to browse webpages, mobile applications, social media, discussion forums, etc, to search for information and intelligence on suspected unlicensed guesthouses. The OLA’s law enforcement officers will initiate follow-up investigations when information on unlicensed guesthouses advertised via online platforms is found. The OLA also conducts publicity work on Internet search engines outside Hong Kong to enable tourists’ access to the information provided by the OLA in the course of planning their trips to Hong Kong.
           
     Tourists and members of the public can make use of the search functions on the OLA’s website (www.hadla.gov.hkIssued at HKT 14:45

Chinese New Year Fireworks Display to be held at 8pm on February 18  
     The event is co-ordinated by the Culture, Sports and Tourism Bureau and is sponsored by the Hong Kong Jockey Club. A total of 31 888 firing shells will be discharged in an approximately 23-minute extravaganza. 

     This year’s theme, “Prosperity Gallops Across Hong Kong”, will be presented in eight distinctive scenes. The opening scene, “Galloping into the New Year”, features a high-density burst of fireworks resembling galloping horses charging forward, setting an energetic tone for the show. Following that, layers of shells build up to evoke the grandeur of thousands of horses in motion, symbolising a promising start to the Year of the Horse. In the second scene, “Celebrating the New Spring Together”, the sky above Victoria Harbour will bloom with the number “8” fireworks and golden ingot patterns, conveying wishes for wealth, prosperity, and abundance in the new year. The fourth scene, “Vision of Harmony”, features star-like fireworks drifting across the sky like peaceful horses galloping toward the horizon, symbolising love and hope for the world. This scene concludes with the Chinese character “吉” (meaning “good fortune”), sending blessings to Hong Kong. The grand finale, “Triumphant Achievement”, will feature majestic crown-shaped fireworks followed by a rapid-fire sequence of high-density bursts, delivering best wishes for the prosperity of the nation and good fortune for all.
  
     In addition to the dazzling fireworks, lighting effects will be featured to enhance the overall viewing experience. 
     To enhance their fireworks experience, members of the public are invited to tune into Radio Television Hong Kong Radio 4 (FM 97.6 to 98.9) for synchronised music.
  
     Members of the public are urged to help keep public areas clean and to show respect for public property. They are also urged to show consideration to others to make the event a safe one.
Issued at HKT 15:00

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Hong Kong Customs alerts public to one model of unsafe toy truck (with photo)      Customs is committed to the protection of consumer interests and regularly conducts spot checks and safety tests on toys and children’s products to ensure that they are reasonably safe for use by consumers.

     Under the TCPSO, it is an offence to supply, manufacture or import unsafe toys or children’s products. The maximum penalty upon conviction is a fine of $100,000 and imprisonment for one year on first conviction, and a fine of $500,000 and imprisonment for two years on subsequent conviction.Issued at HKT 17:00

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Speech by SFST at Inaugural Family Office Forum “Stewardship in the Chinese Context: Family, Legacy, Future” (English Only) 
Zhou Li (Deputy Editor-in-Chief of China Daily), ladies and gentlemen, distinguished guests,
 
     Good morning. It is a great privilege to address you today at this Inaugural Family Office Forum. As we work together to position Hong Kong as Asia’s premier strategic hub for family offices, we recognise the profound interplay in the Chinese context between family wealth, legacy building, and future planning. Here, wealth stewardship extends beyond financial growth to embrace social responsibility, intergenerational harmony, and lasting impact. Hong Kong is committed to fostering an ecosystem that supports sustainable, responsible, and enduring wealth preservation for families worldwide.
 
     Hong Kong has long been a leading global wealth management centre. As of the end of 2024, total assets under management in our asset and wealth management sector surpassed HK$35 trillion, with more than 54 per cent originating from outside Hong Kong and the Mainland. The private banking and private wealth management business linked to family offices and private trusts reached HK$1,551 billion. Hong Kong ranks as Asia’s largest cross-border wealth management centre, and holds the second position in private equity capital under management in Asia after the Mainland. These strengths create a natural, robust platform for family offices to manage, protect, and grow their wealth effectively.
 
     With a long history of expertise in private wealth management, underpinned by the rule of law, world-class professional services, and unparalleled connectivity, Hong Kong is ideally positioned as a trusted base for global high-net-worth families establishing or expanding family offices. Globally, over 2.3 million individuals have a net worth exceeding US$10 million, with more than 36 per cent in Asia. Recent data shows Hong Kong hosts the highest number of ultra-high-net-worth individuals in Asia – over 17 000 – making us a magnet for talent and capital in this space.
 
     In March 2023, we issued the Policy Statement on Developing Family Office Businesses in Hong Kong, outlining targeted measures to build a competitive and supportive ecosystem. These include, among others, a tax concessions regime, the New Capital Investment Entrant Scheme (New CIES), and the establishment of the Hong Kong Academy for Wealth Legacy. As of end-January this year, the New CIES has received over 3 000 applications, with potential investments exceeding HK$90 billion if all approved. More than 1 600 applications have been formally approved, with investments in equities, debt securities, certificates of deposit, eligible collective investment schemes, limited partnership funds, and real estate with certain restrictions in place.
 
     Invest Hong Kong’s dedicated FamilyOfficeHK team provides one-stop support for family offices seeking to establish or expand in our market. By the end of last year, the team had assisted more than 200 family offices to set up or grow their presence in Hong Kong.
 
     Building on this momentum, market research just revealed yesterday that Hong Kong now hosts over 3 300 single family offices, an increase of over 25 per cent over a two-year period. We achieved our 2022-25 target of facilitating at least 200 family offices to set up or expand in Hong Kong ahead of schedule. Looking forward, as we plan to further develop the sector, we aim to attract at least 220 more family offices to establish or expand operations here from 2026 to 2028, broadening our reach to include more markets, for example Europe, the Middle East and ASEAN (Association of Southeast Asian Nations). Beyond investments, family offices contribute substantially through other economic and social channels. It is estimated that single family offices in Hong Kong collectively contribute about HK$12.6 billion annually to the local economy through operating expenditure alone, and that they directly employ over 10 000 full-time professionals within their operations.
 
     Over the past two years, proactive promotion and supportive policies have made family offices a vital pillar of Hong Kong’s financial ecosystem. The city offers a unique blend of top-tier professional services, an exceptional quality of life, and leadership in emerging areas such as green and sustainable investments, art, culture, and philanthropy. We will continue refining our measures – including further expansion of scope for qualifying investment for the preferential tax regimes offered to funds and single-family offices, covering for example precious metals, loans and private credit investments, and digital assets – to maintain this strong growth trajectory.
 
     Combined with Hong Kong’s absence of capital gains tax and estate duty, our tax concession enables families to enhance after-tax returns, preserve wealth across generations, and direct more resources toward philanthropy, legacy-building, and innovative investments. As Asia’s leading cross-border wealth hub, Hong Kong provides unmatched tax certainty and access to diverse opportunities.
 
     We have intensified global outreach through roadshows in the Mainland, Europe, and ASEAN. We are also extensively featured in international media, and conduct direct engagement with ultra-high-net-worth individuals. Our flagship Wealth for Good in Hong Kong Summit has been a major success. The March edition last year, themed “Hong Kong of the World, for the World”, brought together influential family office principals to explore technology, artificial intelligence, philanthropy, succession planning, and cultural innovation. Preparations are underway for the next Summit in March this year to sustain this momentum, and reinforce Hong Kong’s status as the premier global family office hub.
 
     In closing, we warmly invite family offices from around the world to join us in Hong Kong. By leveraging our unique advantages – connectivity to the Mainland and the world, robust infrastructure, and a commitment to stewardship – we can together honour family legacies while shaping a prosperous, sustainable future.
 
     Thank you.
Issued at HKT 10:33

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TD to implement special arrangements for licence renewals before and after Budget Day             “Eligible licence holders do not need to rush to the Licensing Offices to submit renewal applications for their vehicle or driving licences on speculation that their fees may increase in the Budget. The special arrangements are not related to the content of the Budget, about which the TD has no information,” a spokesman for the TD said.
 
Note: For electric private cars, the present rate refers to the licence fee structure and levels effective from November 1, 2025. Since the Government provides a four-month grace period fee arrangement for eligible vehicle owners, if their vehicle licences expire on or before February 28, 2026, they may be renewed on or before the licence expiry date at the old fee level in effect before November 1, 2025.
Issued at HKT 11:00

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Hong Kong Customs combats traders supplying shortweight Chinese New Year products     ​
     Members of the public may report any suspected violations of the WMO to the Customs 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hkIssued at HKT 12:45

Online auction of vehicle registration marks to be held from February 26 to March 2 
     A spokesman for the TD said, “A total of 220 Ordinary VRMs will be available at this online public auction. The list of VRMs (see Annex) has been uploaded to the E-Auction website. Applicants who have paid a $1,000 deposit to reserve an Ordinary VRM for auction should also register as an E-Auction user in advance in order to participate in the online bidding, including placing the first bid at the opening price of $1,000. Otherwise, the VRMs reserved by them may be bid on by other interested bidders at or above the opening price. Auctions for VRMs with ‘HK’ or ‘XX’ as a prefix, special VRMs and personalised VRMs will continue to be carried out through physical auctions by bidding paddles and their announcement arrangements remain unchanged.”

     Members of the public participating in the online bidding should take note of the following important points: 
(2) Bidders are required to provide a digital signature to confirm the submission and amount of the bid by using “iAM Smart+” or a valid digital certificate at the time of the first bid of each online bidding session (including setting automatic bids before the auction begins) to comply with the requirements of the Electronic Transactions Ordinance.
 
(3) If a bid is made in respect of a VRM within the last 10 minutes before the end of the auction, the auction end time for that particular VRM will be automatically extended by another 10 minutes, up to a maximum of 24 hours.
 
(4) Successful bidders must follow the instructions in the notification email issued by the TD to log in to the E-Auction within 48 hours from the issuance of email and complete the follow-up procedures, including:
 (5) A VRM can only be assigned to a motor vehicle registered in the name of the purchaser. Relevant information on the Certificate of Incorporation must be provided by the successful bidder in the Purchaser Information of the Memorandum of Sale if the VRM purchased is to be registered under the name of a body corporate.

(6) Successful bidders will receive a notification email around seven working days after payment has been confirmed and can download the Memorandum of Sale from the E-Auction. The purchaser must apply for the VRM to be assigned to a motor vehicle registered in the name of the purchaser within 12 months from the date of issue of the Memorandum of Sale. If the purchaser fails to do so within the 12-month period, in accordance with the statutory provision, the allocation of the VRM will be cancelled and a new allocation will be arranged by the TD without prior notice to the purchaser.Issued at HKT 15:00

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