Hong Kong Digital Asset Development Policy Declaration 2.0: LEAP Framework to Build a Global Innovation Center

Source: Hong Kong SAR Government

The Government today (June 26) published the Policy Statement 2.0 on the Development of Digital Assets in Hong Kong (Policy Statement 2.0), reaffirming its commitment to building Hong Kong into a global innovation hub in the digital asset sector. The new Policy Statement builds on the initiatives set out in the first Policy Statement in October 2022.

The Policy Statement 2.0 sets out the government’s vision of building a trustworthy and innovative digital asset ecosystem, with risk management and investor protection as the top priorities, while striving to bring tangible benefits to the real economy and financial markets. The new policy statement proposes the “LEAP” framework, with key points including:

Legal and regulatory streamlining

The government is building a unified and comprehensive regulatory framework for digital asset service providers, covering digital asset trading platforms, stablecoin issuers, digital asset trading service providers and digital asset custody service providers. Among them, the Securities and Futures Commission (SFC) will serve as the main regulator for the future licensing mechanism for digital asset trading service providers and digital asset custody service providers. At the same time, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority will lead a comprehensive legislative review to promote the tokenization of real-world assets and financial instruments. The review will comprehensively review all processes of tokenized bond issuance and trading, including but not limited to settlement, registration and record requirements.

Expanding the suite of tokenised products

The Government will regularise the issuance of tokenised government bonds and provide incentives for the tokenisation of real-world assets (including by clarifying the stamp duty arrangements applicable to tokenised exchange-traded funds) to enhance liquidity and accessibility. On this basis, the Government welcomes secondary market trading of relevant tokenised exchange-traded funds through licensed digital asset trading platforms or other platforms in the future. The Government will also promote the tokenisation of a wider range of assets and financial instruments, demonstrating the diverse applications of the technology in different sectors, including precious metals (such as gold), non-ferrous metals and renewable energy (such as solar panels).

Advancing use cases and cross-sectoral collaboration

The licensing mechanism for stablecoin issuers will be implemented on August 1, which will help promote the development of real application scenarios. At the same time, the Government is also committed to strengthening cooperation among regulators, law enforcement agencies and technology providers to develop digital asset infrastructure. To express support and take the lead, the Government welcomes suggestions from market participants on how the Government can experiment and use licensed stablecoins. In addition, Cyberport will also launch a blockchain and digital asset pilot funding program to provide funding for applications with future application potential, iconic and market-impactful projects.

People and partnership development

The Government is committed to working with the industry and academia to promote talent development and position Hong Kong as a centre of excellence for digital asset knowledge sharing and promoting international collaboration, including joint research programmes and global regulatory collaboration. The Government will build a sustainable talent pool by nurturing a new generation of entrepreneurs, researchers and technical experts.

Financial Secretary Paul Chan said: "Digital assets are an important part of financial technology with great development potential. Through blockchain technology, it enables more efficient and lower-cost financial transactions, making financial services more inclusive. The Policy Statement 2.0 shows our vision for the development of digital assets, and demonstrates the substantive application of tokenization through practice, promoting the diversification of application scenarios. By combining prudent regulation with encouraging market innovation, we will build a more prosperous digital asset ecosystem that is integrated with the real economy and social life, bringing benefits to the economy and society, while consolidating Hong Kong's leading position as an international financial center."

The Secretary for Finance and the Treasury, Mr Christopher Hui, said: “Hong Kong’s unique advantages give us an early lead in promoting traditional finance into the digital asset era. The framework set out in the Policy Statement 2.0 will help us move towards LEAP and form a trustworthy, sustainable and deeply integrated digital asset ecosystem into the real economy. The Policy Statement 2.0 also puts Hong Kong firmly at the forefront of digital transformation, providing a clear roadmap for businesses and investors to navigate a robust and thriving digital asset market.”

The Treasury Department and the Securities and Futures Commission will soon conduct a public consultation on the licensing mechanism for digital asset trading service providers and digital asset custody service providers.

over

June 26, 2025 (Thursday)

HKT 11:50