Hong Kong is making bold moves to cement its status as a global leader in digital assets. On June 26, the government unveiled its “Policy Statement 2.0,” a comprehensive update designed to accelerate the adoption and innovation of digital assets across the region. This new framework builds on the groundwork laid in 2022 and signals a clear intent: Hong Kong wants to be the go-to destination for digital asset development, bridging traditional finance with the new era of blockchain and tokenization.
A Modern Blueprint for Digital Assets
The updated policy introduces the “LEAP” framework, which focuses on three pillars:
• Legal Clarity: Streamlined regulations to provide certainty for businesses and investors.
• Expansion of Tokenized Products: Encouraging the development and use of tokenized real-world assets (RWAs), including stablecoins and tokenized securities.
• Advancing Talent and Innovation: Initiatives to foster local expertise and support high-impact blockchain projects, including new funding schemes through Cyberport, Hong Kong’s government-backed tech incubator 1.
Stablecoins and Real-World Use Cases
A standout feature of Policy Statement 2.0 is the emphasis on stablecoins. The government is prioritizing the public adoption of licensed stablecoins, with a new licensing regime set to launch on August 1, 2025 3. This move is expected to unlock real-world applications, especially in cross-border trade and settlement, and bring digital assets on par with traditional financial instruments by offering tax concessions for profits from crypto transactions 1.
Investor Protection and Market Growth
Hong Kong’s approach balances innovation with robust risk management and investor protection. The Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) will soon launch public consultations on licensing regimes for digital asset service providers and custodians, aiming to create a secure and transparent environment for all market participants 2.
The city’s efforts are already paying off. Since the introduction of mandatory licensing for virtual asset trading platforms in 2023, Hong Kong has seen a surge in market activity, with expectations of 30–40% growth in liquidity and vibrancy. The recent use of blockchain technology by the High Court to serve a tokenized injunction order further highlights Hong Kong’s commitment to real-world blockchain applications 5.
A Roadmap for the Future
With Policy Statement 2.0, Hong Kong is not just keeping pace with global trends—it’s setting them. The city’s clear regulatory roadmap, focus on real-world utility, and support for innovation position it as a model for other jurisdictions looking to integrate digital assets into their economies 1 2 5.
“Hong Kong is uniquely positioned to bridge traditional finance with the digital asset era,” said Christopher Hui, Secretary for Financial Services and the Treasury, underscoring the city’s ambition to lead the next wave of fintech transformation.
