Hong Kong Releases New Declaration on Digital Asset Policy, Focused on Building an Innovative Ecosystem

The Hong Kong SAR Government recently released the brand new "Hong Kong Digital Asset Development Policy Declaration 2.0", reaffirming its firm commitment to making Hong Kong a global innovation center for digital assets. This latest declaration builds on the first policy declaration issued in October 2022 and proposes the "LEAP" framework, focusing on four key areas: optimizing legal regulation, expanding tokenized products, promoting application scenarios and cross-border cooperation, as well as talent and partnership development. The framework aims to build a trustworthy, sustainable digital asset ecosystem that is deeply integrated with the real economy.

"LEAP" Framework: Promoting the Integration of Digital Assets Innovation and the Real Economy

The "LEAP" framework clarifies Hong Kong's strategic direction in the digital asset field, seeking a balance between innovation and risk management, and providing a clear development roadmap for enterprises and investors. The four key focuses of the framework include:

1. Optimize laws and regulations

Hong Kong is committed to building a comprehensive and unified regulatory framework that covers digital asset trading platforms, stablecoin issuers, digital asset trading, and custody service providers. The Securities and Futures Commission will serve as the main regulatory authority responsible for formulating relevant licensing mechanisms. In addition, the Financial Services and the Treasury Bureau and the Monetary Authority will work together to review existing laws to promote the tokenization of physical assets and financial instruments, providing clear guidance for market participants.

2. Expand the variety of tokenized products

The government plans to promote the tokenization of physical assets and enhance market liquidity by normalizing the issuance of tokenized government bonds and providing incentive measures. In the future, tokenized exchange-traded funds are expected to be traded in the secondary market through licensed platforms. The government will also encourage broader asset tokenization, covering diverse fields such as precious metals, non-ferrous metals, and renewable energy.

3. Promote application scenarios and cross-sector collaboration

Hong Kong will implement a licensing mechanism for stablecoin issuers in August 2025, providing regulatory support for the application of stablecoins in areas such as payments, supply chain management, and capital markets. The government welcomes market participants to propose innovative suggestions and explore more application scenarios. Meanwhile, the government will strengthen cooperation among regulatory agencies, law enforcement departments, and technology providers to jointly develop digital asset infrastructure.

4. Talent and Partner Development

The government will collaborate with the industry and academia to cultivate a new generation of entrepreneurs, researchers, and technical experts, establishing a sustainable talent pool. Hong Kong is positioned as an excellence center for digital asset knowledge sharing and international cooperation, promoting technological innovation and experience exchange through joint research programs and global regulatory collaboration.

The Vision of Leadership and Hong Kong's Unique Advantages

The Financial Secretary, Paul Chan, emphasized that digital assets are an important component of financial technology. Blockchain technology enables efficient and low-cost financial transactions, making financial services more inclusive. The new policy declaration showcases Hong Kong's vision for the development of digital assets, aiming to promote the diversification of tokenization application scenarios through practice, combining robust regulation with market innovation, and building a digital asset ecosystem closely linked to the real economy and social life.

The Director of the Financial Services and the Treasury Bureau, Xu Zhengyu, added that Hong Kong's unique advantages position it to take the lead in advancing traditional finance into the digital asset era. The "LEAP" framework provides market participants with a clear roadmap, ensuring that Hong Kong remains competitive at the forefront of digital transformation, creating a trusted and sustainable digital asset market.

Hong Kong's Global Digital Asset Leadership

The "Policy Declaration 2.0" continues Hong Kong's proactive policies in the digital asset sector since 2022. Since the implementation of the licensing system for virtual asset trading platforms in June 2023, Hong Kong has granted licenses to several platforms, ensuring market transparency and investor protection. The "Stablecoin Ordinance" passed in May 2025 further refines the regulatory framework, which is set 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 a large number of virtual asset-related companies expressing interest in establishing operations in the region. The government's funding programs and the reform of the licensing mechanism by regulatory authorities will further lower market entry barriers, attracting more innovative companies to Hong Kong.

Summary

The "Hong Kong Digital Asset Development Policy Declaration 2.0" showcases Hong Kong's ambitions and foresight in the field of digital assets through the "LEAP" framework. With a robust regulatory environment, diverse application scenarios, and strong talent support, Hong Kong is moving towards the goal of becoming a global innovation center for digital assets, injecting new momentum into the real economy while reinforcing its unique advantages as an international financial center.