Hong Kong Accelerates Digital Asset Development with New Policy Declaration

June 16, 2025 – Hong Kong

In a significant move to solidify its position as a global digital finance hub, Hong Kong's Financial Secretary Paul Chan Mo-po announced in a signed article on June 15 that the city will "steadily and prudently" advance its digital asset agenda—particularly focusing on stablecoins.

Chan emphasized that with the new stablecoin regulatory framework coming into effect on August 1, 2025, the Hong Kong Monetary Authority (HKMA) will begin processing license applications for stablecoin issuers without delay. This initiative aims to provide a clear and safe regulatory environment for both startups and institutional players seeking to engage with tokenized financial instruments.

Furthermore, the city is preparing to release its second policy declaration on digital assets. This upcoming document will outline updated government positions and strategies to encourage technological innovation, Web3 adoption, and the responsible use of blockchain infrastructure across financial and non-financial sectors.

“Hong Kong is committed to building a robust digital asset ecosystem that balances innovation and risk management,” Chan wrote. “Our regulatory clarity will attract responsible players to develop and apply blockchain-based financial technologies under proper supervision.”

This announcement follows Hong Kong's initial push in late 2022 and 2023 to integrate Web3 and digital finance into its broader financial system. With global jurisdictions like the EU and UAE also racing ahead with digital asset regulations, Hong Kong’s assertive but cautious approach reaffirms its ambition to be a regional leader in the rapidly evolving crypto economy.