Hong Kong Releases New Policy for Digital Asset Development, Accelerating Integration of Innovation with the Real Economy

The Hong Kong Special Administrative Region government recently announced the "Hong Kong Digital Asset Development Policy Declaration 2.0", reaffirming its determination to establish Hong Kong as a global digital asset innovation hub. This latest policy declaration builds on the first declaration made in October 2022 and introduces the "LEAP" strategic framework, focusing on optimizing regulations, expanding tokenized products, advancing application scenarios and cross-border cooperation, as well as talent and partnership development. The goal is to build a trustworthy, sustainable digital asset ecosystem that is deeply integrated with the real economy.

"LEAP" Framework: Four Key Points to Promote Digital Asset Development

1. Improve the legal regulatory system

The Hong Kong government is working to build a comprehensive and unified regulatory framework covering digital asset trading platforms, stablecoin issuers, trading service providers, and custodial service providers. Regulatory agencies will establish relevant licensing mechanisms and will soon embark on public consultations regarding this. At the same time, relevant departments will comprehensively review existing legislation to provide clear legal guidance for asset tokenization, reduce compliance costs, and protect investors' rights.

2. Expand the range of tokenized products

The government plans to promote the tokenization of physical assets and enhance market liquidity through the regular issuance of tokenized government bonds and the provision of incentives. In the future, tokenized exchange-traded funds may be traded on licensed digital asset trading platforms in the secondary market. Additionally, the government encourages broader asset tokenization, involving various sectors such as precious metals, non-ferrous metals, and renewable energy, showcasing the diverse application potential of blockchain technology.

3. Promote application scenarios and cross-border collaboration

Hong Kong will implement a licensing mechanism for stablecoin issuers on August 1, 2025, providing regulatory support for the application of stablecoins in areas such as payment, supply chain management, and capital markets. The government welcomes market participants to propose innovative suggestions and explore more application scenarios. At the same time, the government will strengthen cooperation among regulatory agencies, law enforcement departments, and technology providers to jointly develop digital asset infrastructure. The blockchain and digital asset pilot funding program launched by Cyberport will provide funding of up to HKD 500,000 for promising projects.

4. Cultivating talent and developing partnerships

To ensure the sustainable development of the digital asset ecosystem, the Hong Kong government will collaborate with the industry and academia to cultivate a new generation of entrepreneurs, researchers, and technical experts. Hong Kong aims to position itself as an excellence center for digital asset knowledge sharing and international cooperation, promoting technological innovation and experience exchange through joint research programs and global regulatory collaboration.

Government high-level officials express support for digital asset development

The Financial Secretary, Paul Chan, emphasized that digital assets are an important component of financial technology. Blockchain technology can enable efficient and low-cost financial transactions, making financial services more inclusive. The new policy declaration demonstrates the government's determination to promote the diversification of tokenized application scenarios, aiming to build a digital asset ecosystem closely integrated with the real economy and social life.

The Secretary for Financial Services and the Treasury, Hui Ching-yu, stated that Hong Kong's unique advantages give it a head start in driving the transformation of traditional finance into the digital asset era. The "LEAP" framework provides market participants with a clear roadmap, ensuring that Hong Kong remains competitive at the forefront of digital transformation.

Hong Kong Strengthens Global Digital Asset Leadership

Since the implementation of the licensing system for virtual asset trading platforms in June 2023, Hong Kong has granted licenses to multiple platforms to ensure market transparency and investor protection. The "Stablecoin Regulation" passed in May 2025 further improves the regulatory framework, providing clear regulatory guidelines for fiat-backed stablecoins.

Through the "LEAP" framework, Hong Kong is not only committed to local market innovation but also actively participates in global regulatory collaboration, attracting a large number of virtual asset-related companies expressing their intention to establish operations in Hong Kong. The funding programs of Cyberport and the reform of the licensing mechanism by regulatory agencies will further lower the market entry threshold, attracting more innovative companies to Hong Kong.

Conclusion

The "Hong Kong Digital Asset Development Policy Declaration 2.0" showcases Hong Kong's ambition and foresight in the digital asset sector through the "LEAP" framework. With a robust regulatory environment, diversified application scenarios, and strong talent support, Hong Kong is moving towards its goal of becoming a global innovation hub for digital assets, injecting new momentum into the real economy while consolidating its position as an international financial center.