The Hong Kong government has released its updated Policy Statement 2.0 on the Development of Digital Assets with an aim to become the global crypto hub. Building on its 2022 policy blueprint, the new statement outlines a comprehensive and forward-looking strategy centered around regulation, innovation, and collaboration.
The government’s newly introduced “LEAP” framework, which outlines four key points, namely, legal and regulatory streamlining, expanding tokenised products, advancing use cases and cross-sectoral collaboration and people and partnership development.
Under legal and regulatory streamlining, the government plans to unify the digital asset regulatory regime. The Securities and Futures Commission (SFC) will lead upcoming licensing systems for both digital asset dealers and custodians. Meanwhile, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) will conduct a comprehensive legal review to enable broader tokenisation of real-world assets and financial products, including improvements to settlement, registration, and transaction protocols.
The government is also moving to expand tokenised offerings, and will begin with regularised tokenised government bond issuances. It aims to boost liquidity and investor participation by incentivising the tokenisation of assets like ETFs, gold, and renewable energy instruments. Secondary market trading of tokenised ETFs on licensed platforms is also encouraged.
With a licensing regime for stablecoin issuers launching on August 1, Hong Kong plans to deepen real-world applications of digital assets. The government invites proposals for stablecoin testing and will fund impactful blockchain projects through Cyberport, its tech innovation hub.
Talent and collaboration remain central to the vision. The government aims to nurture a skilled workforce through academic and industry partnerships, positioning Hong Kong as a center for global DA research and regulatory dialogue.
“Digital assets hold great development potential,” said Financial Secretary Paul Chan. “Through tokenisation, we can enhance efficiency, reduce costs, and support financial inclusion.”
Secretary for Financial Services and the Treasury Christopher Hui added, “Hong Kong is uniquely positioned to bridge traditional finance with the digital asset era. This framework helps us ‘LEAP’ forward.”
Public consultations for the new licensing regimes will begin soon, as Hong Kong doubles down on building a trusted and vibrant digital asset ecosystem.
Hong Kong has been moving fast on the regulatory front, and has even become the first region in the world to launch a regulatory framework for fiat-backed stablecoins. South Korea, too, recently introduced the “Digital Asset Basic Act” to establish a legal framework for stablecoins.
Also Read: JPMorgan Chase Files Trademark for Potential Stablecoin “JPMD”
