Hong Kong today unveiled its “Policy Statement 2.0” on digital assets, signaling a reinforced commitment to becoming a global leader in financial innovation. This latest strategy builds upon the framework introduced in October 2022, outlining a vision for a “trusted and innovative digital asset ecosystem” that prioritizes both growth and robust risk management and investor protection.
The updated policy, according to the Hong Kong government, aims to drive tangible financial benefits while fostering a dynamic, regulation-friendly, and innovation-driven environment.
“We strive to build a more flourishing DA ecosystem which will integrate the real economy with social life through a prudent regulatory regime and encouragement to market innovation,” stated Paul Chan, the Financial Secretary. “Such an ecosystem will bring benefits to both the economy and society while consolidating Hong Kong’s leading position as an international financial centre.”
A significant development highlighted in the statement is the ongoing creation of a unified regulatory regime for digital asset service providers. This comprehensive framework will encompass various entities, including crypto exchanges, stablecoin issuers, digital asset dealers, and custodians. The Securities and Futures Commission (SFC) will spearhead the licensing efforts, ensuring all market participants adhere to stringent standards.
In parallel, the Financial Services and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) are set to conduct a legal review to facilitate the tokenization of real-world assets. This includes efforts to ease regulatory hurdles related to settlement, record-keeping, and registration for tokenized instruments like bonds.
The policy also outlines incentives aimed at boosting liquidity and investor access for tokenized assets such as government bonds, precious metals, and renewable energy instruments. Considerations include favorable tax treatment for tokenized exchange-traded funds (ETFs).
The government plans to actively promote more real-world use cases, particularly for stablecoins, to encourage wider adoption within the upcoming licensing structure. Authorities will also focus on enhancing collaboration across sectors, engaging regulators, law enforcement, and technology firms.
Finally, the statement underscores the critical importance of talent development. New partnerships between the digital asset industry and academic institutions are expected to play a key role in building the necessary skills to support long-term innovation and foster market maturity within Hong Kong’s burgeoning digital asset landscape.