The Hong Kong Special Administrative Region (SAR) government released the "Policy Statement on Hong Kong's Development of Digital Assets 2.0" on May 26, introducing the "LEAP" framework to reinforce its commitment to becoming a global hub for digital asset innovation. Building upon the 2022 policy statement, this updated version outlines a trusted and innovative digital asset ecosystem prioritizing risk management, investor protection, and tangible benefits for the economy.
Key Pillars of the LEAP Framework
Legal & Regulatory Streamlining
- Regularize tokenized government bond issuances.
- The Securities and Futures Commission (SFC) will lead licensing for digital asset trading and custody services.
- Comprehensive legal review by the Financial Services and Treasury Bureau (FSTB) and Hong Kong Monetary Authority (HKMA).
Expanding Tokenized Products
- Diversify tokenized assets, including precious metals (e.g., gold), renewables (e.g., solar panels), and ETFs.
- Clarify stamp duty arrangements for tokenized ETFs to enhance liquidity.
Advancing Use Cases & Cross-Sector Collaboration
- Launch pilot funding schemes (e.g., Cyberport’s Blockchain and Digital Asset Initiative) for high-impact projects.
- Encourage stablecoin trials; licensing regime effective August 1.
People & Partnership Development
- Foster talent through academia-industry partnerships.
- Position Hong Kong as a knowledge-sharing hub for digital assets via global regulatory collaboration.
Government Bond Tokenization Goes Mainstream
Tokenized government bonds will transition to regular issuances, incentivizing real-world asset (RWA) tokenization. Secondary market trading via licensed platforms will be promoted to boost adoption.
👉 Explore how tokenization is reshaping global finance
Industry & Expert Reactions
Legislative Council Members:
- Duncan Chiu: "The policy accelerates Web3 development, solidifying Hong Kong’s role as an innovation leader."
- Johnny Ng: "The shift from 'virtual' to 'digital' assets reflects maturity and aligns with global standards."
Private Sector:
- OSL CEO Patrick Pan: "Hong Kong is poised to lead the tokenized financial revolution."
- HashKey Tokenisation CEO Anna Liu: "Policy support for RWAs and metals validates our business model."
Economists:
Dr. Zheng Lei noted the policy’s grounded approach, citing robust regulatory and tax frameworks as catalysts for growth.
FAQs
Q1: What is the LEAP framework?
A1: A 4-pillar strategy (Legal, Expansion, Advancement, People) to guide Hong Kong’s digital asset ecosystem.
Q2: When does the stablecoin licensing start?
A2: August 1, 2024.
Q3: How will tokenized bonds be traded?
A3: Via licensed digital asset platforms or other secondary markets.
Q4: What sectors benefit from tokenization?
A4: Finance (ETFs, bonds), commodities (gold), and renewables.
👉 Discover Hong Kong’s digital asset regulations
Conclusion
The Policy Statement 2.0 signals Hong Kong’s ambition to merge traditional finance with digital innovation, offering a clear roadmap for businesses and investors. With structured policies and cross-sector collaboration, the SAR aims to set a global benchmark in digital asset markets.
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