After more than two years of exploration and groundwork, Hong Kong is making a full sprint towards its grand goal of becoming a 'global digital asset center' with a more determined and systematic posture. In June 2025, the Hong Kong Special Administrative Region government officially published (Hong Kong Digital Asset Development Policy Declaration 2.0), which is not only a continuation and deepening of the first policy declaration in 2022 but also marks the official transition of Hong Kong's digital asset strategy from the 'testbed' stage to a new journey of 'institutionalization, scaling, and globalization.'
The core of this (Declaration 2.0) is the proposal of a four-strategy framework called 'LEAP,' aimed at building a trustworthy and innovative digital asset ecosystem through optimizing legal regulation, expanding tokenized products, advancing application scenarios, and developing talent cooperation. This series of measures not only provides a clear roadmap for global practitioners to enter the Asian market but also ignites tremendous enthusiasm in the capital market, signaling the accelerated arrival of Hong Kong's Web3 era.
Before delving into the policy details, it is worth noting a significant change: the Hong Kong government has officially renamed 'virtual assets' to 'digital assets.' This change in terminology is not coincidental; it reflects profound strategic considerations behind it.
'Virtual' often carries connotations of uncertainty, non-entity, or even illusion in the Chinese context. In contrast, 'digital' better reflects its intrinsic value as a new production factor in the data era and its potential to be on par with traditional financial assets. Officials have stated that the term 'digital assets' sounds more positive and better conveys that Hong Kong's future development will not only involve cryptocurrencies but also encompass the entire digitalization wave of financial products, including the tokenization of real-world assets (RWA), stablecoins, and tokenized securities. This change in wording clearly outlines Hong Kong's ambition—not only to be a trading hub for cryptocurrencies but also to become a global center for digital finance innovation.
Returning to the core interpretation, the 'LEAP' framework proposed in (Declaration 2.0) serves as an action blueprint for Hong Kong's future digital asset development, covering four complementary strategic directions:
Optimizing legal and regulatory streamlining:
This is the cornerstone of the entire framework. Hong Kong is committed to 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 custodial service providers. Among them, the Securities and Futures Commission (SFC) will serve as the main licensing and regulatory body. At the same time, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) will lead a comprehensive review of existing laws to remove legal barriers for the tokenization of real-world assets (RWA) and financial instruments, especially in areas such as settlement, registration, and recordkeeping.
Expanding the suite of tokenised products:
With a solid regulatory foundation, Hong Kong will vigorously promote product innovation. The declaration clearly states that the issuance of 'tokenized government bonds' will transition from an experimental nature to normalization, and tax incentives will be provided for RWA tokenization, such as clarifying stamp duty arrangements for tokenized ETFs to enhance market liquidity and accessibility. The government's vision extends beyond financial products and will actively promote the tokenization of a wider range of physical assets, including precious metals like gold, non-ferrous metals, and even renewable energy (such as solar panels), showcasing the tremendous potential of blockchain technology in enhancing asset transparency and reducing transaction costs.
Advancing use cases and cross-sectoral collaboration:
The ultimate value of technology and products lies in their application. The 'stablecoin issuer licensing mechanism,' implemented on August 1, is seen as a key step in promoting substantive application scenarios. The government has even publicly stated that it welcomes market participants to propose suggestions on how the government can experiment with and utilize the licensed stablecoins. Additionally, Cyberport will launch a 'Blockchain and Digital Asset Pilot Funding Scheme' to provide financial support for market-influential flagship projects, accelerating innovation implementation.
Talent and partnership development:
Talent is the fundamental driving force for industry development. Hong Kong will work to collaborate with the industry and academia to promote joint research programs, cultivating a new generation of entrepreneurs, researchers, and technical experts, and establishing a sustainable talent pool for the digital asset industry. At the same time, Hong Kong will strengthen cooperation with global regulatory agencies, positioning itself as a center for knowledge sharing and international collaboration in the digital asset field.
The clear and proactive policy signals from the Hong Kong government quickly triggered a chain reaction in the capital market. Traditional financial institutions are no longer content to watch from the sidelines but have chosen to 'race in,' seizing advantageous positions in the new Web3 track.
Chinese-funded brokerages make a splash: Led by Guotai Junan International, several brokerages have been approved to upgrade their first license, enabling them to provide compliant virtual asset trading services to clients. This breakthrough means that investors will be able to trade assets such as Bitcoin, Ethereum, and stablecoins directly through strictly regulated traditional brokerage channels. Guotai Junan International's stock price surged nearly 300% following the announcement, reflecting the market's high recognition of such 'compliance bridges.'
GF Securities launches tokenized securities: The Chinese brokerage GF Securities has partnered with HashKey to launch tokenized securities in Hong Kong that include currencies such as the US dollar, Hong Kong dollar, and offshore renminbi. Named 'GF Token,' this daily-interest, daily-redeemable tokenized security is available for purchase by high-net-worth individuals and institutional professional investors. This milestone marks an important step forward in the tokenization process of real-world assets (RWA) in Hong Kong and lays the groundwork for broader on-chain cooperation in tokenized securities within the Hong Kong securities industry.
Investment banks make significant commitments: Renowned as the 'King of Mergers and Acquisitions in China,' Huaxing Capital Holdings Limited has boldly announced the approval of a 'cryptocurrency asset investment plan' totaling up to $100 million. The company clearly stated in its announcement that this move aims to respond to the proactive policies of the Hong Kong government and will focus on the development of stablecoins, RWAs, and the entire cryptocurrency ecosystem. Huaxing Capital's entry is a vote of confidence from traditional top investment banks in the prospects of Hong Kong's Web3.
In summary, Hong Kong's Financial Secretary Paul Chan emphasized when elaborating on (Declaration 2.0) that by combining prudent regulation with encouraging market innovation, Hong Kong aims to build a more vibrant digital asset ecosystem that integrates with the real economy and social life, thus consolidating its leading position as an international financial center.
From the tentative embrace of (Declaration 1.0) to the systematic layout of (Declaration 2.0), Hong Kong's digital asset policy has completed a transformation from points to a surface. The proposal of the 'LEAP' framework not only provides clear guidance for the market but also demonstrates Hong Kong's determination and ambition to the world.
This city is not content to merely serve as a 'firewall' and 'testbed' between the mainland and the world; instead, it aims to leverage its unique institutional advantages and profound financial foundation to truly become a global center for digital asset innovation, trading, and talent. This Web3 wave led by the Pearl of the Orient is about to take off, and its future development is worth global attention.
