Second policy statement on development of digital assets issued to scale Hong Kong to new heights of global digital asset leadership
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The Policy Statement 2.0 sets out a vision for a trusted and innovative DA ecosystem that prioritises risk management and investor protection, while delivering concrete benefits to the real economy and financial markets. The latest statement introduces the "LEAP" framework, which focuses on:
- Legal and regulatory streamlining: The Government is establishing a comprehensive and unified regulatory framework for DA service providers, covering DA exchanges, stablecoins issuers, DA dealing service providers and DA custodian service providers. In particular, the Securities and Futures Commission (SFC) will be the leading authority for the upcoming licensing regimes for DA dealing service providers and DA custodian service providers. Meanwhile, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority will be spearheading a comprehensive legal review to facilitate the tokenisation of real-world assets (RWAs) and financial instruments. The review will adopt a holistic approach and consider different aspects of tokenised bond issuances and transactions, including but not limited to settlement, registration and record requirements.
- Expanding the suite of tokenised products: The Government will regularise the issuance of tokenised Government bonds and incentivise the tokenisation of RWAs to enhance liquidity and accessibility through, among other initiatives, clarifying the stamp duty treatment for tokenised exchange traded funds (ETFs). With that, the Government welcomes the introduction of secondary market trading of these tokenised ETFs on licensed DA trading platforms or through other channels. The Government will also promote the tokenisation of a broader range of assets and financial instruments, demonstrating the versatility of this technology across sectors such as precious metals (e.g. gold) and non-ferrous metals, and renewable energy (e.g. solar panels).
- Advancing use cases and cross-sectoral collaboration: The implementation of the licensing regime for stablecoin issuers on August 1 will facilitate the development of real-world use cases. The Government is also fostering collaboration among regulators, law enforcement agencies and technology providers for development of DA infrastructures. To demonstrate support and to take the lead, the Government welcomes proposals from market participants on how the Government may test the usage of licensed stablecoins. Also, Cyberport will launch a funding scheme for blockchain and DA, offering funding to exemplary and high-impact applications with potential to serve as benchmark for future use cases.
- People and partnership development: The Government is strengthening talent development through partnerships with industry and academia, and is positioning Hong Kong as a centre of excellence for DA knowledge-sharing and international co-operation, including joint research initiatives and global regulatory collaboration. The Government will build a sustainable talent pool through cultivating a new generation of entrepreneurs, researchers and technologists.
The full policy statement can be seen at the Annex.
The Financial Secretary, Mr Paul Chan, said, "Digital assets hold great development potential with significance to fintech. Through the adoption of blockchain technology, more efficient financial transactions at a lower cost can be realised to bring in more inclusive financial services. The Policy Statement 2.0 sets out our vision for DA development and showcases the practical use of tokenisation through application, with a view to boosting the diversification of use cases. We strive to build a more flourishing DA ecosystem which will integrate the real economy with social life through a prudent regulatory regime and encouragement to market innovation, such that it will bring benefits to both the economy and society while consolidating Hong Kong's leading position as an international financial centre."
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "Hong Kong is uniquely positioned to bridge traditional finance with the DA era. The framework set out in the Policy Statement 2.0 helps us "LEAP" towards a trusted, sustainable and deeply integrated DA ecosystem embedded within the real economy. It also keeps Hong Kong at the forefront of digital transformation, offering a clear roadmap for businesses and investors to thrive in a secure and vibrant DA market."
The FSTB and the SFC will be conducting public consultations on the licensing regimes for DA dealing service providers and DA custodian service providers shortly.
Ends/Thursday, June 26, 2025
Issued at HKT 11:50
Issued at HKT 11:50
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