Interpretation of the New Digital Asset Policy in Hong Kong: Comprehensive Layout, Compliance First

Recently, the Hong Kong SAR government announced the latest version of the "Hong Kong Digital Asset Development Policy Declaration", further establishing the strategic goal of making Hong Kong a global digital asset innovation center. The new policy revolves around the four frameworks of "LEAP", which are optimizing legal compliance, expanding the scope of tokenization, broadening application scenarios, and promoting cross-border cooperation, to comprehensively promote the development of Hong Kong's digital asset ecosystem.

Industry experts believe that this policy declaration signifies a critical turning point for Hong Kong in the transition from the experimental stage to global development in the digital asset field. The new policy not only proposes specific measures in areas such as regulation, asset tokenization, application scenarios, and talent cultivation, but also reflects Hong Kong's determination to incorporate Web3 technology into its financial infrastructure.

Compared to the 2022 version, the new policy has made breakthrough progress in several aspects:

1. Stablecoin Regulation: The stablecoin licensing system is planned to be officially implemented on August 1, 2025, providing a clear path for the legal operation of stablecoins.

2. Tokenization of Real-World Assets (RWA): Including physical assets such as gold, green energy, and electric vehicles into the scope of tokenization expands the application areas of digital assets.

3. Tax incentives: Propose tax exemptions for tokenized ETFs and digital asset funds to enhance the competitiveness of Hong Kong's digital asset market.

These policy adjustments reflect that Hong Kong is building a "trinity" institutional system, which includes a clear regulatory framework, extensive asset transparency, and attractive tax policies. This series of measures is expected to elevate Hong Kong from a regulatory testing zone to a core hub for global RWA issuance and trading.

In the field of stablecoins, the new policy sets strict requirements for legal reserve management, redemption mechanisms, and risk prudential measures, aimed at enhancing the legal status and market trust of stablecoins. This initiative will bring new development opportunities to areas such as cross-border e-commerce and global payments.

The tokenization of RWAs is another highlight of this policy. The government is not only promoting the normalization of tokenized bond issuance but also plans to include more physical assets into the tokenization category. This initiative is expected to bridge the connection between digital assets and the real economy, bringing new possibilities for asset management and investment.

The new policy also emphasizes measures in areas such as international cooperation, tax incentives, and talent cultivation. Hong Kong will work with international organizations to develop a cross-border regulatory framework, while attracting digital asset funds and family offices through tax benefits. In addition, the government will include Web3, AI, and blockchain in key talent introduction programs to provide talent support for industry development.

Experts point out that these policies are not only short-term stimulus measures but also lay the foundation for the long-term development of Hong Kong's digital asset market. By establishing a sound institutional environment, Hong Kong is expected to attract more international funds, talent, and technology, consolidating its position as a global financial center.

With the implementation of new policies, industry insiders expect that the Hong Kong digital asset market will exhibit the following characteristics in the future: Compliance, institutionalization, scaling, and globalization. Compliance will become the basic threshold for participating in the market, while platforms that can provide high liquidity, low slippage, and hold compliant licenses will have an advantage in competition.

Overall, the "Hong Kong Digital Asset Development Policy Declaration 2.0" demonstrates Hong Kong's ambition and vision in the field of digital assets. Through comprehensive policy support and institutional innovation, Hong Kong is paving the way to become a global leading digital asset center.