Source: Hong Kong Special Administrative Region Government
The government today (June 26) released the "Hong Kong Digital Asset Development Policy Declaration 2.0" (Policy Declaration 2.0), reaffirming its commitment to establishing Hong Kong as a global innovation center in the digital asset field. The new policy declaration builds upon the initiatives proposed in the first policy declaration in October 2022.
Policy Declaration 2.0 outlines the government's vision of constructing a trustworthy and innovation-focused digital asset ecosystem, prioritizing risk management and investor protection while striving to bring substantial benefits to the real economy and financial markets. The new policy declaration introduces the "LEAP" framework, with key focuses 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. The Securities and Futures Commission (SFC) will serve as the primary regulatory body for licensing digital asset trading service providers and digital asset custody service providers in the future. Simultaneously, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority will lead a comprehensive legal review to promote the tokenization of real-world assets and financial instruments. This review will comprehensively examine the processes of tokenized bond issuance and trading, including but not limited to settlement, registration, and record-keeping requirements.
Expanding the Suite of Tokenised Products
The government will normalize the issuance of tokenized government bonds and provide incentives for real-world asset tokenization (including clarifying stamp duty arrangements for tokenized exchange-traded funds) to enhance liquidity and popularity. On this basis, the government welcomes the future secondary market trading of such tokenized exchange-traded funds through licensed digital asset trading platforms or other platforms. The government will also promote broader asset and financial instrument tokenization, demonstrating the technology's diverse applications across 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, helping to advance the development of substantial application scenarios. Simultaneously, the government is committed to strengthening cooperation among regulatory bodies, law enforcement agencies, and technology providers to develop digital asset infrastructure. To demonstrate support and take a leading role, the government welcomes market participants to propose suggestions on how the government can experiment with and use licensed stablecoins. Additionally, Cyberport will launch a blockchain and digital asset pilot funding program to provide funding for projects with future application potential, landmark significance, and market impact.
People and Partnership Development
The government is committed to collaborating with industry and academic sectors to promote talent development and position Hong Kong as an excellence center for digital asset knowledge sharing and international cooperation, including joint research programs and global regulatory collaboration. The government will establish a sustainable talent pool by cultivating a new generation of entrepreneurs, researchers, and technical experts.
Financial Secretary Paul Chan stated: "Digital assets are an important and highly promising component of financial technology. Through blockchain technology, we enable more efficient and lower-cost financial transactions, making financial services more inclusive. Policy Declaration 2.0 demonstrates our vision for digital asset development and showcases the practical applications of tokenization through practice, advancing the diversification of application scenarios. By combining prudent regulation with market innovation encouragement, we aim to build a more vibrant digital asset ecosystem 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."
Secretary of Financial Services and the Treasury Christopher Hui said: "Hong Kong's unique advantages position us at the forefront of driving traditional finance into the digital asset era. The framework established in Policy Declaration 2.0 helps us move towards 'LEAP' to form a trustworthy, sustainable digital asset ecosystem deeply integrated with the real economy. Policy Declaration 2.0 also firmly places Hong Kong at the forefront of digital transformation, providing a clear roadmap for businesses and investors to navigate a robust and thriving digital asset market."
The FSTB and SFC will soon conduct a public consultation on the licensing mechanism for digital asset trading service providers and digital asset custody service providers.
End
June 26, 2025 (Thursday)
11:50 Hong Kong Time
