The Policy Declaration 2.0 outlines the Hong Kong government’s vision to build a trusted and innovation-driven digital asset ecosystem, prioritizing risk management and investor protection while delivering tangible benefits to the real economy and financial markets.
Key Initiatives Under the "LEAP" Framework
Hong Kong’s government has introduced the Digital Asset Development Policy Declaration 2.0, structured around four core areas:
Legal and Regulatory Streamlining
- Establishing a unified regulatory framework for digital asset service providers, including trading platforms, stablecoin issuers, and custodians.
- The Securities and Futures Commission (SFC) will oversee licensing for digital asset trading and custody services.
- Comprehensive legislative reviews to facilitate tokenization of real-world assets (RWA) and financial instruments.
Expanding Tokenized Product Offerings
- Regular issuance of tokenized government bonds and incentives for RWAs (e.g., clarified stamp duty policies for tokenized ETFs).
- Encouraging secondary market trading of tokenized ETFs via licensed platforms.
- Promoting tokenization across diverse sectors like precious metals and renewable energy.
Advancing Use Cases and Cross-Sector Collaboration
- Stablecoin issuer licensing (effective August 1) to foster practical applications.
- Strengthening collaboration among regulators, law enforcement, and tech providers to develop digital asset infrastructure.
- Funding support for blockchain pilots via Cyberport’s Digital Asset Grant Scheme.
Talent and Partnership Development
- Collaborating with industry and academia to cultivate a sustainable talent pipeline.
- Positioning Hong Kong as a hub for knowledge sharing and global regulatory cooperation.
Government Commitments
- Financial Secretary Paul Chan: Emphasized the Declaration’s role in showcasing tokenization’s real-world utility and diversifying applications.
- Secretary for Financial Services Christopher Hui: Highlighted the "LEAP" framework as a roadmap for Hong Kong’s leadership in digital transformation.
👉 Explore Hong Kong’s digital asset initiatives
FAQs
Q: How does the Policy Declaration 2.0 differ from the 2022 version?
A: It builds on earlier measures, adding concrete steps like stablecoin licensing and RWA tokenization incentives.
Q: What sectors will benefit from tokenization?
A: Beyond finance, applications include precious metals, renewables, and infrastructure.
Q: When will stablecoin regulations take effect?
A: Licensing begins August 1, 2025.
Q: How can startups access funding?
A: Cyberport’s Grant Scheme will support pilot projects with market potential.
Disclaimer: This content is for informational purposes only and does not constitute financial advice.