Hong Kong is taking big strides in the world of digital assets with the release of its second policy statement aimed at accelerating its development in this area. The new policy, dubbed “Policy Statement 2.0,” builds upon the framework set out in the initial release from October 2022.
The Hong Kong government has outlined its vision for a “trusted and innovative digital asset ecosystem” that prioritizes growth, risk management, and investor protection. The goal is to create a dynamic and regulatory-friendly environment that drives real-world financial benefits.
Financial Secretary Paul Chan expressed the government’s commitment to building a flourishing digital asset ecosystem that integrates the real economy with social life. This approach aims to bring benefits to both the economy and society while solidifying Hong Kong’s position as an international financial center.
One of the key components of the new policy is the LEAP framework, which focuses on Legal and regulatory streamlining, Expanding tokenized products, Advancing use cases and cross-sectoral collaboration, and promoting people and partnership development.
The government is working on establishing a unified regulatory regime for digital asset service providers, covering crypto exchanges, stablecoin issuers, digital asset dealers, and custodians. The Securities and Futures Commission (SFC) will lead the licensing efforts to ensure compliance with strict standards.
Additionally, efforts are underway to support the tokenization of real-world assets by easing regulatory hurdles in settlement, record-keeping, and registration for tokenized bonds and other instruments. Incentives are being considered for tokenizing assets such as government bonds, precious metals, and renewable energy instruments to enhance liquidity and investor access.
The government is also pushing for the development of more real-world use cases, particularly for stablecoins, to drive broader adoption within the new licensing structure. Collaboration across sectors will be improved by engaging regulators, law enforcement, and tech firms.
Lastly, talent development is a key focus area, with new partnerships between the digital asset industry and academic institutions aimed at building the skills needed to support long-term innovation and market maturity.
Overall, Hong Kong’s renewed focus on digital assets demonstrates its commitment to becoming a global leader in financial innovation while prioritizing regulatory compliance, investor protection, and market growth. This strategic approach is expected to position Hong Kong as a hub for digital asset development and adoption in the coming years.