Hong Kong releases Policy Declaration 2.0 to build a global digital asset innovation center.

On June 26, news came that the Hong Kong SAR government published the "Hong Kong Digital Asset Development Policy Declaration 2.0" (referred to as "Policy Declaration 2.0"), reiterating the government's commitment to making Hong Kong a global innovation center in the digital asset field.
The "Policy Declaration 2.0" proposes the "LEAP" framework, which includes legal and regulatory streamlining, expanding the suite of tokenised products, advancing use cases and cross-sectoral collaboration, and people and partnership development.
The content of "Optimizing Laws and Regulations" shows that the Hong Kong government is building a unified and comprehensive regulatory framework for digital asset service providers, covering digital asset trading platforms, stablecoin issuers, digital asset trading service providers, and digital asset custody service providers.
The "Policy Declaration 2.0" clarifies that the Hong Kong Securities and Futures Commission is the main regulatory body for digital asset trading service providers, responsible for licensing and registration matters, setting standards, optimizing regulatory processes, and reducing potential regulatory arbitrage under different digital asset regulatory frameworks; the Hong Kong Monetary Authority will act as the frontline regulator for banks, overseeing their digital asset trading activities.
In the section "Promoting Application Scenarios and Cross-Sector Cooperation," the "Policy Declaration 2.0" supports stablecoins and other tokenized projects, including exploring the use of stablecoins as payment tools.
The "Policy Declaration 2.0" points out that stablecoins provide a cost-effective alternative outside the traditional system, with the potential to revolutionize payments, supply chain management, and capital market activities. The Hong Kong government will implement a regulatory regime for stablecoin issuers starting from August 1, 2025, establishing relevant requirements for reserve asset management, stabilization mechanisms, redemption processes, and prudent risk management.
The "Policy Declaration 2.0" shows that many enterprises involved in cross-border trade and settlement business have expressed a strong interest in using stablecoins to reduce costs and accelerate transaction processes. To fully unleash the potential of stablecoins, the government and regulatory agencies will provide a favorable market environment and necessary regulatory guidance to promote Hong Kong licensed stablecoin issuers to research and implement solutions to address substantial pain points in economic activities. The Hong Kong government welcomes market participants to propose suggestions on how to experiment with and use licensed stablecoins, such as improving the efficiency of government payments.
In addition, Cyberport will launch a pilot funding program for blockchain and digital assets, providing funding for applicant projects with future application potential, iconic status, and market impact.
The following is the full text of "Policy Declaration 2.0":
Hong Kong Digital Asset Development Policy Declaration 2.0
Vision: To build a trustworthy and innovation-driven digital asset hub.
The Government of the Hong Kong Special Administrative Region is determined to build Hong Kong into a global leading digital asset center—a market where innovation can thrive in a controlled risk environment, bringing substantial benefits to the real economy and financial markets, and is trustworthy.
The "Hong Kong Digital Asset Development Policy Declaration 2.0" ("Policy Declaration 2.0") published by the Financial Services and the Treasury Bureau ("FSTB") is a proactive response from Hong Kong to the ongoing evolution of the global digital asset market. Upholding the principle of "same business, same risks, same rules," the "Policy Declaration 2.0" aims to outline forward-looking strategies that empower industry development, promote inclusive finance, cultivate talent, while safeguarding investors and maintaining financial security, thereby consolidating Hong Kong's leading position as an international financial center.
"LEAP": Moving towards the formation of a trusted, sustainable, and deeply integrated digital asset ecosystem in the real economy.
Built on the initiatives proposed in the first "Policy Declaration" in October 2022, including establishing robust regulation, launching digital asset exchange-traded funds ("ETFs") and other innovative products, expanding investor channels through allowing retail participation, and initiating experimental projects such as green bond tokenization, Hong Kong is now ready to move towards a trustworthy, sustainable, and deeply integrated digital asset ecosystem in the real economy, referred to as "LEAP". The Securities and Futures Commission ("SFC") earlier announced the "ASPIRe" roadmap, aimed at guiding Hong Kong's digital asset ecosystem into the future in a constantly changing environment, implementing a series of measures such as adaptive compliance and product frameworks (including derivatives trading) to strike a balance between investor protection and market competitiveness. The "Policy Declaration 2.0" outlines the next phase of development, focusing on enhancing liquidity in digital asset trading and promoting a more diversified supply of digital asset products to strengthen Hong Kong's position as a global digital asset hub. The government and regulatory agencies also welcome quality digital asset service providers from around the world to participate in the market to promote liquidity and healthy, orderly competition.
In order to achieve this vision and goal, and to create a digital asset ecosystem that is deeply integrated with the real economy and financial markets, and is future-oriented, we propose a series of strategic policy directions and will implement corresponding measures. When formulating policy directions and measures, we strive to ensure that they are not limited by current technologies and can adapt to the future development of digital assets, while integrating into the real economy and financial systems to achieve sustainable growth. These measures are framed under "LEAP", which stands for—("L"egal and regulatory streamlining) optimizing legal and regulatory frameworks, ("E"xpanding the suite of tokenised products) expanding the variety of tokenized products, ("A"dvancing use cases and cross-sectoral collaboration) promoting use cases and cross-departmental collaboration, and ("P"eople and partnership development) talent and partner development, to create a trustworthy, innovative, and vibrant digital asset ecosystem that reinforces Hong Kong's leading position in the global financial landscape.
(“L”egal and regulatory streamlining) Optimize legal and regulatory
(a) A unified and comprehensive regulatory framework
Based on the progress made since 2022, the government will continue to collaborate with regulatory agencies and industry stakeholders to develop a comprehensive legal and regulatory framework to regulate digital assets, ensuring the sustainable and responsible development of Hong Kong's digital asset ecosystem. This system covers digital asset exchanges, stablecoin issuers, digital asset trading service providers, and digital asset custody service providers, with a core focus on investor and consumer protection. The next major step is to conduct public consultations on the licensing mechanism for digital asset trading service providers and digital asset custody service providers to meet investors' needs for high liquidity, large transactions, and secure custody of assets. The government proposes to designate the Securities and Futures Commission as the primary regulatory body for digital asset trading service providers, responsible for licensing and registration, establishing standards, optimizing regulatory processes, and reducing the potential for regulatory arbitrage under different digital asset regulatory frameworks. Meanwhile, the Hong Kong Monetary Authority ("HKMA") will act as the frontline regulatory body for banks, overseeing their digital asset trading activities.
Similarly, the Securities Regulatory Commission will serve as the main regulatory authority for digital asset custody service providers, responsible for licensing and registration, as well as setting standards, while the Monetary Authority will act as the frontline regulator for banks, overseeing their digital asset custody activities.
This unified and comprehensive regulatory framework will enhance market credibility, promote broader digital asset activities and large transactions, and provide clear guidance for market participants. This arrangement will also support effective risk management and provide liquidity, ensuring the establishment of a balanced ecosystem to foster market innovation and protect investors. Regular reviews and close communication with stakeholders will be conducted to ensure that the framework can adapt to technological and market developments.
At the same time, Hong Kong will continue to implement international standards related to digital assets, including the International Organization of Securities Commissions' "Policy Recommendations on Crypto and Digital Asset Markets," the Financial Stability Board's "Global Regulatory Framework for Crypto Asset Activities," the Basel Committee on Banking Supervision's "Prudential Treatment of Crypto Asset Risk," and the Organisation for Economic Co-operation and Development's "Crypto Asset Reporting Framework" to promote tax transparency.
(b) Review of Tokenization Laws and Regulations
The tokenization of real-world assets and financial instruments presents opportunities for the integration of new technologies with traditional finance, which can drive economic activity and innovate the structure of financial markets, thereby enhancing efficiency, reducing costs, increasing transparency, and promoting investor participation. To fully realize these potentials, clear, explicit, and convenient legal and regulatory frameworks are essential. The Treasury and the Monetary Authority will lead a review of the relevant laws and regulatory frameworks, drawing on international experiences and practices, to promote the further application of tokenization in Hong Kong. The initial focus of the review will be on the bond market, which has already passed the proof of concept stage, and it is expected to provide references for the tokenization of other real-world assets and financial instruments. A comprehensive examination of the issuance and trading processes of tokenized bonds will be conducted, including but not limited to settlement, registration, and record-keeping requirements. During the review process, the government will collaborate with legal experts and industry stakeholders to ensure that the review results and related improvement recommendations are practical and can meet future development needs, establishing Hong Kong as a pioneer in this innovative field.
("E"xpanding the suite of tokenised products) Expanding the variety of tokenised products
(c) Regularization of Tokenized Government Bond Issuance
The government has issued tokenized green bonds twice (with a total amount of approximately HK$6.8 billion), proactively demonstrating the benefits of tokenization. On this basis, the government will regularize the issuance of tokenized government bonds and explore different currency and term arrangements, as well as other innovative options. The government hopes to provide the market with stable and high-quality digital bonds through this initiative, further expanding accessibility and attracting a wider range of investors. To further leverage the advantages of tokenization, the Treasury Bureau and the Monetary Authority will continue to communicate with industry experts to understand various market opinions, including those related to incorporating digital currencies to enhance trading efficiency, secondary market trading application scenarios, and further expanding investor participation in the local bond market. The government aims to establish a global benchmark by being the first to issue tokenized bonds and regularizing them, enhancing market confidence in this technology while encouraging the adoption by the public and private sectors.
(d) Provide incentives for the tokenization of real-world assets and financial assets.
The tokenization of real-world assets and financial market instruments can enhance the efficiency, accessibility, and potential liquidity of the Hong Kong market. Through the HKMA's Ensemble project (where the SFC is a key partner and jointly leads the engagement of the asset management industry), there is a strong encouragement for innovative application scenarios, including the tokenization of traditional financial products (such as money market funds and other funds) and the revenue streams from real-world assets (such as electric vehicle charging stations). The HKMA is exploring the establishment of Ensemble infrastructure to facilitate the settlement of tokenized deposits in the interbank market, simplifying processes and enhancing liquidity.
The London Metal Exchange (LME) has included Hong Kong as a licensed delivery location within its global warehouse network and has approved warehouse operators in Hong Kong to store metals registered under the London Metal Exchange brands. To further develop the commodity trading ecosystem, the government encourages the market to apply tokenization and physical asset tracking technology in storage programs. Token creation technology can serve as identification labels for global warehouses, assisting in tracking metal assets and related data such as their sustainability, promoting Hong Kong's further integration into the global warehouse network.
The government will intensify efforts to expand tokenization schemes, promoting a broader tokenization of assets and financial instruments, showcasing the diverse applications of this technology across different sectors, including precious metals (such as gold), non-ferrous metals, and renewable energy (such as solar panels).
Currently, all exchange-traded funds (ETFs) listed on the Hong Kong Stock Exchange are exempt from stamp duty when transferred. To promote the development of the tokenized market, the government will clarify that this stamp duty exemption also applies to tokenized ETFs. Based on this exemption, the government welcomes market participants to explore the advantages of tokenizing ETFs, such as money market ETFs, including introducing them for secondary market trading on licensed digital asset trading platforms or other platforms. Looking ahead, the government will maintain an open attitude, considering factors such as fiscal impact and market development, to review the tax arrangements for the transfer of other Securities and Futures Commission-recognized funds after tokenization.
The government will submit legislative proposals to include specified digital assets in qualifying transactions for funds and family investment control tools that are privately offered, which will be eligible for profits tax exemptions. If the proposal is approved by the Legislative Council, the tax exemption will take effect from the 2025/2026 taxation year.
(“A”dvancing use cases and cross-sectoral collaboration) Promoting application scenarios and inter-departmental collaboration
(e) Support for stablecoins and other tokenized projects, including exploring the use of stablecoins as a payment tool.
Stablecoins provide a cost-effective alternative outside traditional systems, with the potential to revolutionize payments, supply chain management, and capital market activities. The government will implement a regulatory framework for stablecoin issuers starting August 1, 2025. This framework sets proper requirements for reserve asset management, stabilization mechanisms, redemption processes, and prudent risk management, which are the cornerstones for achieving the aforementioned vision. These regulatory requirements help ensure the stability and credibility of stablecoin issuances, enhancing their reliability for use both locally and internationally. Many businesses involved in cross-border trade and settlement have expressed strong interest in using stablecoins to reduce costs and speed up transaction processes. To fully leverage the potential of stablecoins, the government and regulatory bodies will provide a favorable market environment and necessary regulatory guidance to facilitate licensed stablecoin issuers in Hong Kong to research and implement solutions for various application scenarios, addressing substantial pain points in economic activities. To demonstrate the government's support and take the lead, market participants are welcome to suggest how the government can experiment with and utilize licensed stablecoins, such as to enhance the efficiency of government payments.
(f) Promote collaboration among regulatory agencies, law enforcement agencies, and technology providers.
As a digital technology incubator in Hong Kong, Cyberport has been actively supporting tokenization projects in Hong Kong and, in collaboration with the Monetary Authority on the Ensemble project, provides a thriving environment for startups to explore innovative fintech solutions. To further support the development of tokenization projects, Cyberport will collaborate with relevant stakeholders in the digital asset industry, utilizing its incubation ecosystem to provide support, including business matching opportunities, technical support, industry expert guidance, and participation in accelerator programs related to digital assets and Web3. Startups and companies engaged in tokenization solutions will benefit from specialized resources, enabling them to experiment with innovative ideas and commercialize them. Cyberport will also launch a blockchain and digital asset pilot funding program to provide funding for projects with future application potential, iconic status, and market impact. Beyond funding, Cyberport will also assist these companies and coordinate with relevant stakeholders to support the implementation of pilot projects as needed.
The dedicated team of the Invest Hong Kong welcomes and is ready to support digital asset service providers in establishing and expanding their business in Hong Kong. Among the many supports available, the Invest Hong Kong can help potential digital asset service providers connect with banks and various professional and support services, and facilitate their business setup.
Hong Kong Exchanges and Clearing Limited has developed the first digital asset index in Hong Kong to provide investors with a transparent and reliable benchmark for Bitcoin and Ethereum prices within the Asian time zone, supporting Hong Kong's development as a leading digital asset center in Asia.
To maintain market integrity and enhance trust in the digital asset system, the government will encourage the development of digital asset infrastructure, including but not limited to various regulatory technologies, cybersecurity, and monitoring solutions with local experience and deep regional expertise. These tools will strengthen Hong Kong's regulatory framework and capabilities, promoting the secure and sustainable development of digital assets. The government will promote cooperation among technology providers, regulatory agencies, and law enforcement agencies to optimize these solutions and ensure they meet the specific needs of Hong Kong's digital asset ecosystem.
("P"eople and partnership development) Talent and partnership development
(g) Collaborate with market participants and universities to promote talent development.
The government will continue to encourage training and talent development in the digital asset industry, with a particular focus on blockchain applications, artificial intelligence integration, and digital asset innovation, to nurture local talent, attract global digital asset professionals to Hong Kong, and support the development of startups and financial institutions. The first talent list published in 2018 already included fintech professionals, including digital asset professionals from around the world. Next, Cyberport will assist the government in achieving this goal through its related measures in Web3, blockchain, and artificial intelligence technology training, thereby creating a stable reservoir of professional talent, continuously driving innovation, and contributing to the local digital asset industry. These measures include experience-sharing sessions and collaborations with global digital asset companies to provide cutting-edge knowledge for the talent pool.
(h) Position Hong Kong as a center of excellence for knowledge sharing and promote collaboration with other jurisdictions.
The government will promote strategic cooperation between universities and the industry to connect academic research with practical applications in the digital asset field. Joint research programs will focus on developing new blockchain applications, tokenization frameworks, monitoring, and AI-driven financial tools. By involving students in digital asset projects, these collaborations will cultivate a new generation of entrepreneurs, researchers, and technical experts, ensuring a continuous flow of creativity and expertise. By aligning academic achievements with industry needs, a sustainable talent pool will be established in Hong Kong to support goals in the development of digital assets.
The government will strengthen cooperation between regulatory agencies and law enforcement agencies, coordinate the work of local regulatory and law enforcement agencies, and support the development of a transparent, secure, and resilient digital asset market. The government will also support and participate in international cooperation with regulatory agencies, including through relevant international organizations and establishing memorandums of understanding with regulatory agencies and other government institutions in other jurisdictions, to achieve information sharing and regulatory cooperation in the digital asset field. At the same time, the government will ensure cooperation between departments through existing high-level internal mechanisms.
Summary: The future of integration, innovation, confidence, and opportunity.
The "Policy Statement 2.0" represents Hong Kong's determination to LEAP towards becoming a global leader in the digital asset space. Through a unified regulatory framework, legal and regulatory reviews, the regularization of tokenized government bond issuance, the tokenization of real-world assets and financial products, the promotion of stablecoin application scenarios, strengthening cooperation in regulation, and advancing international collaboration, the government is laying the foundation for further innovation and market development. Combined with a thriving ecosystem supported by training and project assistance, collaboration between universities and the industry, as well as digital asset infrastructure, Hong Kong will create significant benefits for the global real economy and financial markets. With the joint efforts of regulators, the industry, and society, a future that integrates innovation, confidence, and opportunities will be built, leading Hong Kong to a new frontier of global digital asset leadership.
Financial Services and the Treasury Bureau Government of the Hong Kong Special Administrative Region June 26, 2025 #BTC再创新高#