On June 26, 2025, Hong Kong announced an expansive update to its digital asset strategy with the release of Policy Statement 2.0, aiming to accelerate the development of a robust digital asset ecosystem. This updated framework builds upon the initial policy from October 2022 and introduces the LEAP framework, focusing on Legal and regulatory streamlining, Expanding tokenized products, Advancing use cases, and People and partnership development.
The key initiatives include creating a unified regulatory regime for digital asset service providers such as crypto exchanges, stablecoin issuers, dealers, and custodians. The Securities and Futures Commission (SFC) will oversee licensing efforts to ensure market integrity. In addition, the Financial Services and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) will perform a legal review aimed at facilitating the tokenization of real-world assets (RWA), including government bonds, precious metals, and renewable energy instruments.
Tax incentives and regulatory easing for tokenized ETFs and bonds are being considered to enhance liquidity and broaden investor access. The policy also emphasizes broadening practical stablecoin use cases in payments and financial services alongside the introduction of a new stablecoin licensing regime starting August 1. Cross-sector collaboration between regulators, law enforcement, tech firms, and academia is prioritized to nurture innovation and talent development, positioning Hong Kong as a global hub for digital asset research and education.
Financial Secretary Paul Chan highlighted that these efforts intend to integrate digital assets with the real economy and social life, balancing growth with risk management and investor protection to sustain Hong Kong’s status as an international financial center.