Summary
Hong Kong has issued its second policy statement on developing digital assets, strengthening its commitment to becoming a global leader in this space. The policy outlines a vision for a trusted and innovative digital asset ecosystem, prioritizing risk management and investor protection. It also introduces the “LEAP” framework, focusing on legal and regulatory streamlining, expanding tokenized products, advancing use cases, and people and partnership development.
Investor Identification, Introduction, and negotiation.
** Main Story**
Hong Kong Solidifies Digital Asset Hub Ambitions with New Policy Statement
Hong Kong has doubled down on its ambition to become a leading global digital asset hub with the release of its “Policy Statement 2.0 on the Development of Digital Assets.” Issued on June 26, 2025, this policy builds upon the foundation laid by the initial statement in October 2022, signaling a clear and sustained commitment to fostering innovation and growth in the digital asset sector. The government envisions a robust and trustworthy digital asset ecosystem that not only protects investors but also integrates seamlessly with the real economy and traditional financial markets. This new policy comes at a time of increasing global competition in the digital asset space, with other jurisdictions also vying for a prominent position.
LEAPing Forward: A Four-Pronged Approach
The core of Policy Statement 2.0 is the “LEAP” framework, a multi-faceted approach designed to propel Hong Kong to the forefront of the digital asset revolution.
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Legal and Regulatory Streamlining: Recognizing the need for clear and comprehensive regulations, the government is working to establish a unified framework for digital asset service providers. This will encompass exchanges, stablecoin issuers, dealers, and custodians, ensuring a level playing field and robust investor protection. The Securities and Futures Commission (SFC) will take the lead in licensing digital asset dealers and custodians. Concurrently, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority are undertaking a comprehensive legal review to pave the way for the tokenization of real-world assets (RWAs) and financial instruments. This will involve a holistic examination of various aspects, including settlement, registration, and record-keeping requirements for tokenized bond issuances and transactions.
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Expanding Tokenized Products: The policy aims to broaden the range of tokenized products available in Hong Kong. The government plans to regularize the issuance of tokenized government bonds and incentivize RWA tokenization to enhance liquidity and accessibility. One key initiative involves clarifying the stamp duty treatment for tokenized exchange-traded funds (ETFs), fostering their growth and adoption. The government also welcomes proposals from market participants regarding the use of licensed stablecoins, particularly as new stablecoin regulations are slated to take effect in August. This forward-thinking approach is designed to encourage innovation and provide regulatory clarity, allowing the market to develop within a well-defined framework.
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Advancing Use Cases and Cross-Sectoral Collaboration: Hong Kong recognizes the transformative potential of digital assets across various sectors. The government is actively promoting the tokenization of a wider array of assets, including precious metals, renewable energy, and other financial instruments. This cross-sectoral approach aims to showcase the versatility of tokenization technology and unlock new opportunities for businesses and investors. By actively encouraging experimentation and collaboration, the government aims to establish Hong Kong as a center of excellence for digital asset applications. This will not only drive innovation but also contribute to the growth and diversification of Hong Kong’s economy.
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People and Partnership Development: The success of Hong Kong’s digital asset ambitions hinges on a skilled workforce and strong partnerships. The government is committed to fostering talent development and facilitating collaboration between industry stakeholders, academia, and regulators. This collaborative ecosystem will ensure that Hong Kong has the expertise and resources necessary to navigate the evolving digital asset landscape. By investing in people and fostering collaboration, Hong Kong seeks to create a sustainable and thriving digital asset ecosystem.
Hong Kong’s Vision for the Future of Finance
The government’s vision extends beyond simply creating a thriving digital asset market. They aim to integrate digital assets into the fabric of Hong Kong’s economy and society, offering benefits to businesses and individuals alike. This forward-thinking approach positions Hong Kong as a leader in the ongoing global digital transformation.
The government’s proactive stance on digital assets is a clear signal of its commitment to innovation and its belief in the transformative power of this technology. By embracing digital assets, Hong Kong is not just adapting to the future of finance, it is actively shaping it. This commitment, combined with a clear regulatory framework and a focus on investor protection, creates a fertile ground for the continued growth and evolution of the digital asset sector in Hong Kong. As the global competition intensifies, Hong Kong’s strategic approach may well position it as a premier destination for digital asset businesses and investors in the years to come.
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