The Hong Kong Special Administrative Region Government issued the "Hong Kong Digital Asset Development Policy Statement 2.0" (hereinafter referred to as "Policy Statement 2.0") on June 26, reaffirming its firm commitment to building Hong Kong into a global innovation center in the field of digital assets. Based on the first policy statement in October 2022, the "Policy Statement 2.0" proposes the "LEAP" framework, focusing on optimizing laws and regulations, expanding the types of tokenized products, promoting application scenarios and cross-sector cooperation, and the development of talents and partners, aiming to build a trustworthy, sustainable and deeply integrated digital asset ecosystem into the real economy.
“LEAP” Framework: Promoting the Integration of Digital Asset Innovation and the Real Economy
The Policy Statement 2.0 clarifies Hong Kong’s strategic direction in the field of digital assets through the “LEAP” framework (Legal and regulatory streamlining, Expanding the suite of tokenised products, Advancing use cases and cross-sectoral collaboration, People and partnership development), balances innovation and risk management, and provides a clear development roadmap for companies and investors. The following are the four major focuses of the framework:
Legal and Regulatory Streamlining
To ensure the healthy development of the digital asset market, the Hong Kong government is committed to building a unified and comprehensive regulatory framework 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 be the main regulator responsible for the formulation of the licensing mechanism for digital asset trading service providers and custody service providers, and will soon launch a public consultation.
In addition, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) will lead a comprehensive review of existing laws to promote the tokenization of real-world assets and financial instruments. The review includes but is not limited to the settlement, registration and record requirements for the issuance and trading of tokenized bonds, aiming to provide clear legal guidance for market participants, reduce compliance costs, and protect the rights and interests of investors.
Expanding the Suite of Tokenised Products
The Hong Kong government plans to promote the tokenization of real-world assets and enhance market liquidity and popularity by regularizing the issuance of tokenized government bonds and providing incentives (such as clarifying the stamp duty arrangements for tokenized exchange-traded funds). In the future, tokenized exchange-traded funds are expected to be traded in the secondary market through licensed digital asset trading platforms or other platforms.
In addition to financial instruments, the government will also encourage the tokenization of a wider range of assets, covering precious metals (such as gold), non-ferrous metals and renewable energy (such as solar panels) and other diverse fields, demonstrating the application potential of blockchain technology in different industries. This move will further enrich the product variety of Hong Kong's digital asset market and attract more institutional and retail investors to participate.
Advancing Use Cases and Cross-Sectoral Collaboration
To promote the practical application of digital assets, Hong Kong will implement a licensing mechanism for stablecoin issuers on August 1, 2025, to provide regulatory support for the application of stablecoins in payment, supply chain management and capital markets. The government welcomes market participants to put forward innovative suggestions on the use of licensed stablecoins to explore more application scenarios.
At the same time, the government will strengthen cooperation between regulators, law enforcement agencies and technology providers to jointly develop digital asset infrastructure. The blockchain and digital asset pilot funding program launched by Hong Kong Cyberport will provide up to HK$500,000 in funding for projects with future potential, iconicity and market influence. The application deadline is August 1, 2025, to encourage companies to test blockchain and Web3.0 applications.
People and Partnership Development
To ensure the sustainable development of the digital asset ecosystem, the Hong Kong government will work with the industry and academia to cultivate a new generation of entrepreneurs, researchers and technical experts and build a sustainable talent pool. Hong Kong is positioned as a center of excellence for digital asset knowledge sharing and international cooperation, promoting technological innovation and experience exchange through joint research programs and global regulatory collaboration. This move will consolidate Hong Kong's leadership in the global digital asset field.
Leadership Vision and Hong Kong’s Unique Advantages
Financial Secretary Paul Chan said: "Digital assets are an important part of financial technology. Blockchain technology enables efficient and low-cost financial transactions, making financial services more inclusive. The Policy Declaration 2.0 shows our vision for the development of digital assets. Through practice, we will promote the diversification of tokenization application scenarios, combine prudent supervision with market innovation, build a digital asset ecosystem that is closely integrated with the real economy and social life, bring substantial benefits to Hong Kong's economy and society, and consolidate Hong Kong's position as an international financial center."
Secretary for Finance and the Treasury, Christopher Hui, added: "Hong Kong's unique advantages put us at the forefront of promoting the digital asset era for traditional finance. The LEAP framework in the Policy Statement 2.0 provides a clear roadmap for market participants to ensure that Hong Kong remains competitive at the forefront of digital transformation and build a trustworthy and sustainable digital asset market."
Hong Kong’s global digital asset leadership
Policy Declaration 2.0 continues Hong Kong's proactive policy in the field of digital assets since 2022. Since the implementation of the Virtual Asset Trading Platform (VATP) licensing system in June 2023, Hong Kong has granted licenses to several platforms, such as HKVAX, to ensure market transparency and investor protection. The Stablecoin Ordinance passed in May 2025 further improves the regulatory framework and is scheduled to take effect on August 1, providing clear regulatory guidance for fiat-backed stablecoins.
Through the "LEAP" framework, Hong Kong is not only committed to local market innovation, but also actively participates in global regulatory collaboration, attracting more than 80 virtual asset-related companies to express interest in setting up businesses in Hong Kong. Cyberport's funding program and the SFC's licensing mechanism reform will further lower the market entry threshold and attract more innovative companies to enter Hong Kong.
Conclusion
The Hong Kong Digital Asset Development Policy Declaration 2.0 demonstrates Hong Kong's ambition and foresight in the field of digital assets through the "LEAP" framework. With a stable and prudent regulatory environment, diversified application scenarios and strong talent support, Hong Kong is moving towards a leading position as a global digital asset innovation center, injecting new impetus into the real economy, while consolidating its unique advantages as an international financial center.
Disclaimer: This article is compiled based on public information and is intended to provide information reference. It does not constitute investment advice.
