TLDR
Hong Kong launches LEAP framework to streamline digital asset rules and boost blockchain adoption.
Stablecoin licensing in Hong Kong begins August 1 under new regulatory regime.
Tokenized bonds, gold, and ETFs to trade on licensed platforms in Hong Kong.
Cyberport to fund blockchain projects as HK pushes real-world crypto adoption.
Hong Kong has introduced an updated strategy to support the digital asset sector, reinforcing its ambition to be a global hub. On June 26, the government released “Policy Statement 2.0,” building on the original plan announced in October 2022.
The new strategy presents a clear plan for digital asset growth while balancing innovation with investor protection and market integrity. It introduces the “LEAP” framework, which focuses on Legal and regulatory streamlining, Expanding tokenized products, Advancing use cases, and promoting People and partnership development.
Hong Kong Streamlining Rules and Supervision
The government is creating a comprehensive licensing regime for all key digital asset service providers. This includes exchanges, stablecoin issuers, digital asset dealers, and custodians. The Securities and Futures Commission (SFC) will lead the licensing efforts for custodians and dealers.
In addition, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) will carry out a legal review. This review aims to support the use of tokenized real-world assets and financial instruments. It will assess how current laws apply to processes like registration, settlement, and record-keeping.
Authorities plan to ensure that tokenized instruments such as bonds can operate within a regulated and efficient legal framework. These efforts are intended to make it easier for institutions and market players to adopt blockchain-based solutions for traditional financial assets.
Growing Tokenization of Real Assets
The new policy aims to expand tokenization across various sectors, including government bonds, metals, and renewable energy assets. The government will continue issuing tokenized bonds and is exploring ways to clarify how stamp duty applies to tokenized ETFs.
The statement mentioned that secondary trading of these tokenized ETFs could take place on licensed digital asset trading platforms. Officials believe this could boost market participation and improve access to traditionally hard-to-trade assets.
The expansion of tokenization is expected to cover more financial products and physical commodities. These include gold, non-ferrous metals, and renewable energy infrastructure such as solar panels. The government stated that this will help promote the broader use of blockchain in asset markets.
Supporting Stablecoins and Cross-Sector Collaboration
A new licensing regime for stablecoin issuers will begin on August 1. This regulatory structure is designed to encourage the launch of stablecoin-related services and applications. The government invited firms to propose ways in which it can support testing licensed stablecoins for real-world usage.
There are plans to improve coordination between regulators, law enforcement, and blockchain firms. This includes building infrastructure that supports digital asset transactions and helps ensure compliance with financial rules.
Cyberport, a government-backed tech hub, will launch a funding program for blockchain and digital asset projects. The scheme will support projects with high potential for adoption and market development. Authorities said these applications may serve as models for broader use across Hong Kong and other regions.
Talent Development and Global Cooperation
The policy places a strong focus on building local expertise in blockchain and digital asset fields. The government will work with universities and the private sector to strengthen training and research in this area.
Joint research projects and international partnerships are planned to support knowledge exchange and regulatory development. These efforts will help Hong Kong align with global standards and attract international firms.
“The framework set out in the Policy Statement 2.0 helps us ‘LEAP’ towards a trusted, sustainable and deeply integrated DA ecosystem,” said Mr Christopher Hui, Secretary for Financial Services and the Treasury.
Mr Paul Chan, the Financial Secretary, added, “Digital assets can bring faster and cheaper financial transactions and support more inclusive financial services.”
Public consultations will begin soon for the upcoming licensing regimes, as Hong Kong continues to shape its digital asset landscape.
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