Hong Kong has unveiled its second blueprint for the digital asset (DA) sector, aiming to solidify its position as a global crypto and fintech hub.
Core Strategy: Stablecoins & Tokenization
Central to this strategy is the “LEAP” framework—prioritizing Legal clarity, Ecosystem expansion, Applications (real-world use), and Talent development. Issued Thursday, the policy builds upon the foundation laid in October 2022.
Key components include a licensing regime for stablecoin issuers, starting August 1st, designed to foster practical applications. The Securities and Futures Commission (SFC) will lead this regulation, while the Financial Services and the Treasury Bureau (FSTB) and Hong Kong Monetary Authority will spearhead efforts to support real-world asset (RWA) tokenization through legal review.
Boosting Assets and Innovation
The government intends to regulate tokenized government bonds and promote tokenized exchange-traded funds (ETFs) by clarifying their stamp duty, facilitating their secondary market trading.
Furthermore, Hong Kong aims to encourage tokenization across broader sectors, including precious metals and renewable energy assets. A Cyberport funding program will support promising blockchain/D.A. projects.
“With that, the Government welcomes the introduction of secondary market trading… showcasing the practical use of tokenization.”
— Financial Secretary Paul Chan
Diving into Derivatives
Hong Kong is also moving towards introducing digital asset derivatives trading for professional investors as financial authorities position the city as a leading hub, following approvals for spot ETFs, futures, and staking services.
