Hong Kong has reaffirmed its commitment to becoming a global innovation hub for digital assets with the release of its Digital Asset Development Policy Declaration 2.0 (Policy Declaration 2.0). The updated framework introduces the "LEAP" strategy, focusing on legal streamlining, tokenized product expansion, cross-sector collaboration, and talent development.
Key Highlights of Policy Declaration 2.0
1. "LEAP" Strategic Framework
- Legal & Regulatory Streamlining: Unified licensing for digital asset service providers (exchanges, stablecoin issuers, custodians).
- Expanding Tokenized Products: Government bond tokenization to become routine, with incentives for private-sector adoption.
- Advancing Use Cases: Support for stablecoin pilot projects, including potential government payment applications.
- Partnership Development: Collaboration with universities and industry to foster talent and R&D.
2. Regulatory Updates
- The Securities and Futures Commission (SFC) will oversee digital asset trading platforms, while the Hong Kong Monetary Authority (HKMA) supervises bank-related activities.
- Stablecoin issuer licensing takes effect from August 1, 2025, with reserve management and redemption requirements.
3. Stablecoin Innovation
Stablecoins are recognized for their potential to reduce cross-border payment costs. The government invites proposals for:
- Public-sector payment efficiency trials.
- Private-sector solutions for trade settlements.
4. Tokenization Initiatives
- Cyberport launches a blockchain pilot fund to support startups.
- Tax exemptions extended to tokenized ETFs and private investment vehicles.
FAQs
Q: What is the LEAP framework?
A: A 4-pillar strategy to enhance Hong Kong’s digital asset ecosystem through legal reforms, product diversity, collaboration, and talent growth.
Q: How will stablecoins be regulated?
A: Issuers must comply with reserve and risk-management rules from 2025, overseen by HKMA and SFC.
Q: Can stablecoins be used for government payments?
A: The government welcomes pilot proposals to improve payment efficiency.
👉 Explore Hong Kong’s digital asset regulations
This declaration positions Hong Kong as a frontier for blockchain innovation while balancing investor protection and market growth.
### Keywords:
1. Hong Kong digital assets
2. Stablecoin regulation
3. Tokenized bonds
4. LEAP framework
5. SFC licensing
6. Blockchain innovation
7. Cyberport fund