The region’s administration published its new Policy Statement 2.0 on June 26, which focuses on digital asset development and regulation. The new paper is a follow-up to its 2022 predecessor and shows significant next steps towards creating a healthier digital asset market.
The officials aim to develop Hong Kong into an international center for digital innovation and blockchain-related financial services. The new statement introduces the “LEAP” framework, which regulates legal, product, collaboration, and talent initiatives for the sector.
The government is developing an integrated legal framework for exchanges, stablecoin issuers, trading providers, and custodians. The Securities and Futures Commission (SFC) will license trading and custody services.
Concurrently, the Treasury and Financial Services Bureau (FSTB) and the Hong Kong Monetary Authority will also review laws to expedite tokenization. This would include settlement and registration conditions for financial instruments and tokenized bonds.
The government plans to regularize tokenized government securities while promoting new instruments like gold, bullion, and solar projects. Government officials also plan to introduce secondary market trading for tokenized exchange-traded funds on licensed virtual exchanges.
Government backs education for digital asset growth
Hong Kong is preparing to launch a licensing regime for stablecoin issuers on August 1, targeting more real-world adoption. The regulators, enforcers of laws, and technology experts are joining efforts to enhance infrastructure. Cyberport will spur blockchain innovation through funding high-impact and scalable projects, prioritizing policy directions.
To address long-run growth, the government spends on education and collaborative research. By working with universities and global institutions, Hong Kong seeks to lead international cooperation in digital asset development. Talent development efforts will focus on training new developers, researchers, and entrepreneurs across the blockchain fields.
Financial Secretary Paul Chan and Treasury Secretary Christopher Hui affirmed the city’s plan to integrate digital assets into real-world use. Public consultations on licensing for trading and custody platforms will begin soon under the FSTB and SFC.
