SFC CEO Says Next-Generation Investors Are Reshaping Finance as Regulator Expands Crypto Framework
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Securities and Futures Commission Chief Executive Officer Julia Leung said financial institutions must accelerate their adoption of digital assets and emerging technologies to remain competitive as younger investors increasingly dominate the market.
Speaking at Consensus Hong Kong 2026, Leung said second- and third-generation investors, including Generation Z, are changing how financial services are consumed. She noted that younger clients prefer digital platforms, faster settlement, and products that enable fractional ownership, prompting traditional finance firms to adapt their offerings.
Leung said banks, asset managers, and brokers should evaluate how distributed ledger technology and artificial intelligence can enhance their operations and client services in a technology-driven financial environment.
The SFC is advancing initiatives to strengthen Hong Kong's position as a digital asset hub. The regulator has introduced trading measures that will allow margin financing for digital assets, initially covering Bitcoin and Ether, and is working toward enabling crypto-linked perpetual contracts. It has also issued a circular permitting licensed platforms to engage affiliated companies for market-making activities.
In addition, the SFC is preparing regulatory frameworks covering crypto custody, asset management, and advisory services. These proposals are expected to be submitted to Hong Kong's legislature within the year.
Addressing settlement limitations linked to fiat-based systems, Leung highlighted Project Ensemble, an initiative exploring tokenized deposits and digital money use cases aimed at improving transaction efficiency.
Leung acknowledged that innovation often outpaces regulation, stating that the market frequently moves ahead of supervisory frameworks. She emphasized the importance of continued dialogue with industry participants to ensure investor protection while supporting the development of new digital asset products.
