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

On June 26, news was announced that the Hong Kong SAR government released 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 hub in the digital asset sector.
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 "Optimize Legal and Regulatory" shows that the Hong Kong government is constructing 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-Industry Cooperation," the "Policy Declaration 2.0" supports stablecoins and other tokenized projects, including exploring the use of stablecoins as a payment tool.
The "Policy Declaration 2.0" points out that stablecoins provide a cost-effective alternative outside of traditional systems, with the potential to revolutionize payments, supply chain management, and capital market activities. The Hong Kong government will implement a regulatory framework for stablecoin issuers starting August 1, 2025, setting relevant requirements for reserve asset management, stabilization mechanisms, redemption processes, and prudent risk management.
The "Policy Declaration 2.0" shows that many enterprises participating in cross-border trade and settlement business have expressed strong interest in using stablecoins to reduce costs and accelerate transaction processes. To fully leverage the potential of stablecoins, the government and regulatory authorities will provide a favorable market environment and necessary regulatory guidance to promote research and implementation solutions by licensed stablecoin issuers in Hong Kong, addressing substantive 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 to enhance the efficiency of government payments.
In addition, Cyberport will launch a pilot funding program for blockchain and digital assets, providing funding for applicant projects that have potential future applications, are iconic, and have market influence.
The full text of the "Policy Declaration 2.0" is as follows:
Hong Kong Digital Asset Development Policy Declaration 2.0
Vision: To build a trustworthy and innovative digital asset center.
The Government of the Hong Kong Special Administrative Region is committed to building 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 ensuring trust.
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, empower industry development, promote inclusive finance, cultivate talent, while ensuring investor protection and maintaining financial security, thereby consolidating Hong Kong's leading position as an international financial center.
"LEAP": Moving towards the formation of a trustworthy, sustainable, and deeply integrated digital asset ecosystem in the real economy.
Building on the measures proposed in the first "Policy Declaration" issued in October 2022, including the establishment of robust regulation, the launch of digital asset exchange-traded funds ("ETFs") and other innovative products, the expansion of investor channels through allowing retail participation, and the initiation of experimental projects such as the tokenization of green bonds, Hong Kong is now ready to move towards the formation of a trustworthy, sustainable, and deeply integrated digital asset ecosystem that supports the real economy, referred to as "LEAP". The Securities and Futures Commission ("SFC") previously announced the "ASPIRe" roadmap, aimed at guiding Hong Kong's digital asset ecosystem into the future amid a constantly changing environment, implementing a series of measures such as adaptive compliance and product frameworks (like derivative trading) to balance investor protection and market competitiveness. The "Policy Declaration 2.0" outlines the next stage of development, focusing on enhancing digital asset trading liquidity and promoting a more diverse supply of digital asset products to strengthen Hong Kong's position as a global digital asset hub. The government and regulatory bodies also welcome high-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, 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 with the real economy and financial systems to achieve sustainable growth. These measures are framed under "LEAP": ("L"egal and regulatory streamlining) optimizing legal and regulatory frameworks, ("E"xpanding the suite of tokenised products) expanding the variety of tokenised products, ("A"dvancing use cases and cross-sectoral collaboration) advancing use cases and cross-sectoral collaboration, and ("P"eople and partnership development) talent and partnership development, to create a trustworthy, innovative, and vibrant digital asset ecosystem, reinforcing Hong Kong's leading position in the global financial landscape.
("L"egal and regulatory streamlining) Optimize legal and regulation
(a) Unified and comprehensive regulatory framework
Building on the progress made since 2022, the government will continue to work with regulatory authorities and industry stakeholders to develop a comprehensive legal and regulatory framework governing 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 focus on investor and consumer protection. The next key measure is to conduct public consultations on the licensing mechanism for digital asset trading service providers and digital asset custody service providers to meet investors' demands for high liquidity, large transactions, and secure custody of assets. The government proposes to designate the Securities and Futures Commission as the primary regulator 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. Meanwhile, the Hong Kong Monetary Authority ("HKMA") will act as the frontline regulator for banks, overseeing their digital asset trading activities.
Similarly, the Securities Regulatory Commission will serve as the main regulatory body 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 regulatory body 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 will be conducted, and close communication with stakeholders will be maintained 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 for Crypto and Digital Asset Markets", the Financial Stability Board's "Global Regulatory Framework for Crypto Asset Activities", the Basel Committee on Banking Supervision's "Prudent Treatment of Crypto Asset Risks", 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 provides opportunities for the integration of new technologies and traditional finance, which can promote economic activities and structural innovation in financial markets, thereby enhancing efficiency, reducing costs, increasing transparency, and encouraging investor participation. To fully realize these potentials, clear, definite, and convenient legal and regulatory systems are essential. The Treasury and the Monetary Authority will lead a review of the relevant legal and regulatory frameworks, referencing 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 that has passed the proof of concept stage, and it is also hoped to provide references for the tokenization of other real-world assets and financial instruments. The review will comprehensively examine the issuance and trading processes of tokenized bonds, 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 HKD 6.8 billion), proactively demonstrating the benefits of the tokenization scheme. Based on this, the government will regularize the issuance of tokenized government bonds and explore different currency and maturity arrangements, as well as other innovative options. The government hopes to provide a stable and high-quality digital bond to the market through this initiative, further expanding accessibility and attracting a broader investor base. To further leverage the advantages of tokenization, the Financial Secretary's Office and the Monetary Authority will continue to communicate with industry experts to understand various opinions in the market, including those regarding the inclusion of digital currencies to enhance trading efficiency, scenarios for secondary market trading applications, and further expanding investor participation in the local bond market. The government aims to set a global benchmark by being the first to issue tokenized bonds and regularizing them, enhancing market confidence in this technology, while also encouraging adoption by both public and private sectors.
(d) Provide incentives for the tokenization of real-world assets and financial assets.
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 major partner and co-leads the engagement of the asset management industry), there is active encouragement for innovative application scenarios, including tokenizing traditional financial products (such as money market funds and other funds) as well as the revenue streams of 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, to streamline processes and enhance 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 commodities trading ecosystem, the government encourages the market to apply tokenization and physical asset tracking technology in its warehousing programs. Token creation technology can serve as an identification label for global warehouses, assisting in tracking metal assets and relevant 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 the tokenization of a wider range of assets and financial instruments, demonstrating 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 such stamp duty exemptions also apply 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 bringing them into licensed digital asset trading platforms or other platforms for secondary market trading. 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 qualified transactions eligible for profits tax exemptions under private placements of funds and family investment control tools. If the proposal is passed by the Legislative Council, the tax exemptions will take effect from the 2025/2026 tax year.
(“A”dvancing use cases and cross-sectoral collaboration) Promote application scenarios and inter-departmental cooperation
(e) Support for stablecoins and other tokenized projects, including the exploration of stablecoins as a payment tool.
Stablecoins provide a cost-effective alternative outside of 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 forth proper requirements for reserve asset management, stabilization mechanisms, redemption processes, and prudent risk management, serving as the cornerstone for achieving the aforementioned vision. These regulatory requirements help ensure the stability and credibility of stablecoin issuance, enhancing its reliability for use both locally and internationally. Many enterprises involved in cross-border trade and settlement have expressed strong interest in using stablecoins to reduce costs and expedite transaction processes. To fully harness the potential of stablecoins, the government and regulatory agencies will provide a favorable market environment and necessary regulatory guidance, promoting research and implementation of licensed stablecoin issuers in Hong Kong for various application scenarios to address substantial pain points in economic activities. To demonstrate government 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 cooperation among regulatory agencies, law enforcement, and technology providers.
As a digital technology incubator in Hong Kong, Cyberport has been actively supporting tokenization projects in Hong Kong and providing a thriving environment for startups to explore innovative financial technology solutions through collaboration with the Monetary Authority on the Ensemble project. To further support the development of tokenization projects, Cyberport will collaborate with relevant stakeholders in the digital asset industry, leveraging 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 dedicated resources that enable them to experiment with innovative ideas and commercialize them. Cyberport will also launch a Blockchain and Digital Asset Pilot Grant Scheme to provide funding for application projects with future application potential, iconic status, and market impact. Beyond funding, Cyberport will assist these companies and coordinate with relevant stakeholders to support the implementation of pilot projects as needed.
The dedicated team of the government investment promotion agency welcomes and is ready to support digital asset service providers in establishing and expanding their business in Hong Kong. Among the various available supports, the investment promotion agency can help potential digital asset service providers connect with banks and different professional and support services, and facilitate their business establishment.
The Hong Kong Exchanges and Clearing Limited has developed Hong Kong's first digital asset index, providing 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 safe and sustainable development of digital assets. The government will promote collaboration among technology providers, regulatory bodies, 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 partner 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, focusing specifically on blockchain applications, artificial intelligence integration, and digital asset innovation, in order to cultivate 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 has included fintech professionals, including digital asset professionals from around the world. Next, Cyberport will assist the government in achieving this goal through its relevant measures for training in Web3, blockchain, and artificial intelligence technologies, thereby building a stable reserve 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 the talent pool with cutting-edge knowledge.
(h) Position Hong Kong as a center of excellence for knowledge sharing and promote cooperation 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 the continuous flow of ideas and expertise. By aligning academic achievements with industry needs, a sustainable talent pool will be established in Hong Kong to support the 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 memoranda of understanding with regulatory agencies and other government bodies in other jurisdictions to achieve information sharing and regulatory cooperation in the field of digital assets. At the same time, the government will ensure cooperation between departments through existing high-level internal mechanisms.
Summary: A future of integrated innovation, confidence, and opportunity
The "Policy Statement 2.0" represents Hong Kong's determination to LEAP into a leading position in the global digital asset space. Through a unified regulatory framework, legal and regulatory review, the regularization of tokenized government bond issuance, the tokenization of real-world assets and financial products, the promotion of stablecoin application scenarios, enhanced cooperation in regulatory aspects, and the promotion of 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 industries, 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 regulatory bodies, the industry, and society, a future that integrates innovation, confidence, and opportunities will be built, leading Hong Kong to a new realm 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#