Hong Kong has traditionally adopted a relatively hands-off approach to regulation, with regulatory powers in place described as somewhat conservative. However, in recent years the government has adopted a more robust approach, particularly following the global financial crisis in 2008, most notably establishing the Accounting and Financial Reporting Council to oversee accountants and auditors. With the recent economic downturn, consolidation and change in the mix of players operating in Hong Kong, we now predict a shift to a comparatively pragmatic business-friendly approach to regulation in 2026 to increase the attractiveness of the jurisdiction by making it more accessible and easier to operate in. Hong Kong has also recently taken steps to regulate and embrace virtual assets and we expect this trend to continue in 2026.