Terminology Change: “Virtual Assets” → “Digital Assets”
The policy officially replaces the term “virtual assets” with “digital assets”, aligning with global industry standards and better encompassing broader innovations like tokenised bonds, commodities, and stablecoins .
Hong Kong Legislative Council member Duncan Chiu emphasized that the shift not only broadens scope but also reflects a more positive, forward‑looking image .
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LEAP Framework – Four Pillars of the Strategy
The policy outlines a comprehensive “LEAP” framework detailing structural and ecosystem development :
Pillar Objective Key Actions
Legal & Regulatory Streamlining Unify and modernise regulations SFC licensing for DA trading & custody; legal review by FSTB & HKMA for tokenisation frameworks
Expanding Tokenised Products Broaden coverage and accessibility Regular issuance of tokenised government bonds; incentives and stamp duty clarity for tokenised ETFs and RWA
Advancing Use Cases & Collaboration Promote real-world adoption Stablecoin licensing from August 1; Cyberport pilot funding; infrastructure support through regulator-tech collaboration
People & Partnerships Foster talent and partnerships Talent development with academia; Hong Kong to lead in international knowledge-sharing and regulatory cooperation
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Notable Highlights:
Stablecoin licensing regime begins August 1, enabling the growth of practical payment and financial use cases .
Encouragement of tokenisation across asset classes—including government bonds, ETFs, precious metals (e.g., gold), non-ferrous metals, and renewable energy assets like solar panels .
Cyberport will launch funding to support blockchain and digital asset pilot projects .
Licensing consultations for DA trading and custody services will be held soon by SFC and FSTB .
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Why This Matters
1. Regulatory clarity: By adopting unified licensing and terminology, Hong Kong is reducing confusion and compliance complexities.
2. Real‑world integration: Tokenising tangible assets like bonds and real estate boosts accessibility, liquidity, and competitiveness compared to traditional markets.
3. Fintech leadership: Hong Kong is positioning itself as a global fintech frontier, offering stability and infrastructure to support international market players .
4. Regional advantage: This policy reinforces Hong Kong’s role as a key digital asset hub in Asia, competi
ng with Singapore and Dubai for market leadership.