Hong Kong issues the "Digital Asset Development Policy Declaration 2.0", striving to become a global leading digital asset center

Recently, the Hong Kong Special Administrative Region Government released the "Hong Kong Digital Asset Development Policy Declaration 2.0," which demonstrates its firm determination to build Hong Kong into a global leading digital asset center. The declaration aims to create a trustworthy market environment that is controllable in risk, thriving in innovation, and capable of bringing substantial benefits to the real economy and financial markets.

The release of this declaration coincides with other regions tightening related policies. Industry insiders believe that Hong Kong's influence in the Web3 sector is expected to significantly increase in the coming years, potentially becoming a new global Web3 hub.

The declaration proposed the "LEAP" framework, which includes four strategic policy directions.

1. Legal and regulatory streamlining
2. Expanding the suite of tokenised products
3. Advancing use cases and cross-sectoral collaboration
4. Talent and Partnership Development

These measures aim to create a trustworthy, innovative, and vibrant digital asset ecosystem, strengthening Hong Kong's leading position in the global financial landscape.

The declaration also proposed a series of specific measures:

• Conducting public consultations on the licensing mechanism for digital asset trading service providers and custodial service providers.
• Review relevant laws and regulatory frameworks to promote the further application of tokenization in Hong Kong.
• Regularize the issuance of tokenized government bonds
• Clarify that tokenized ETFs are eligible for stamp duty exemption
• Support for stablecoins and other tokenized projects, exploring the use of stablecoins as a payment tool.
• Launch the blockchain and digital asset pilot funding program

The Financial Secretary of Hong Kong, Paul Chan, stated that digital assets are an important and highly promising component of financial technology. Through blockchain technology, more efficient and lower-cost financial transactions can be achieved, making financial services more inclusive. The "Policy Declaration 2.0" showcases Hong Kong's vision for the development of digital assets and demonstrates the practical applications of tokenization, promoting the diversification of application scenarios.

The Secretary for Financial Services and the Treasury of Hong Kong, Xu Zhengyu, believes that the framework set out in the "Policy Declaration 2.0" will help Hong Kong form a trustworthy, sustainable, and deeply integrated digital asset ecosystem with the real economy, providing enterprises and investors with a clear roadmap to navigate the robust and developing digital asset market.

Industry experts point out that there are three key changes in this declaration:

1. Stablecoins will be regulated, with plans to officially implement the stablecoin licensing system on August 1, 2025.
2. Treat the tokenization of RWA as a key industry, promote the normalization of bond issuance, and plan to include assets such as gold, green energy, and electric vehicles in the tokenization scope.
3. Tokenized ETFs and digital asset funds are expected to enjoy tax exemptions.

These reforms demonstrate Hong Kong's determination not only to support Web3 but also to integrate Web3 as part of its financial infrastructure. The update of Hong Kong's Web3 policy has completed the "trinity" system loop: regulatory certainty, asset transparency, and tax competitiveness. This series of measures is expected to position Hong Kong as a benchmark for compliant innovation in digital assets in Asia within 3-5 years, providing a "Hong Kong solution" for the integration of global traditional finance and the digital economy.