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

On June 26, news came that the Hong Kong Special Administrative Region government released the "Hong Kong Digital Asset Development Policy Declaration 2.0" (referred to as "Policy Declaration 2.0"), reaffirming the government's commitment to making Hong Kong a global innovation center in the digital asset field.
The "Policy Declaration 2.0" proposes the "LEAP" framework, which includes optimizing legal and regulatory (Legal and regulatory streamlining), expanding the suite of tokenised products (Expanding the suite of tokenised products), advancing use cases and cross-sectoral collaboration (Advancing use cases and cross-sectoral collaboration), and people and partnership development (People and partnership development).
The content of "Optimizing Laws and Regulations" 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 primary regulatory authority 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 regulatory authority for banks, overseeing their digital asset trading activities.
In the "Promoting Application Scenarios and Cross-Sector Cooperation" section, 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 from August 1, 2025, establishing relevant requirements for reserve asset management, stabilization mechanisms, redemption processes, and prudent risk management.
The "Policy Declaration 2.0" shows that many enterprises involved in cross-border trade and settlement services have expressed a strong interest in using stablecoins to reduce costs and accelerate transaction processes. To fully leverage the potential of stablecoins, the government and regulatory agencies will provide a favorable market environment and necessary regulatory guidance to promote research and implementation plans by licensed stablecoin issuers in Hong Kong to address substantial 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 also launch a pilot funding scheme for blockchain and digital assets to provide funding for application projects with future application potential, iconic status, and market impact.
The following is the full text of the "Policy Declaration 2.0":
Hong Kong Digital Asset Development Policy Declaration 2.0
Vision: Build a trustworthy and innovation-driven digital asset center
The Hong Kong Special Administrative Region Government 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 is trustworthy.
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 to empower industry development, promote inclusive finance, cultivate talent, while ensuring investor protection and maintaining financial security, thus consolidating Hong Kong's leading position as an international financial center.
"LEAP": Moving towards the formation of a trusted, sustainable, and deeply integrated digital asset ecosystem in the real economy.
Based on the initiatives proposed in the first "Policy Declaration" 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 green bond tokenization, Hong Kong is now ready to move towards forming a trustworthy, sustainable, and deeply integrated digital asset ecosystem within the real economy, as part of the "LEAP" initiative. The Securities and Futures Commission ("SFC") previously announced the "ASPIRe" roadmap, aimed at guiding Hong Kong's digital asset ecosystem into the future in a constantly changing environment, implementing a series of measures such as adaptive compliance and product frameworks (like derivatives trading) to strike a balance between investor protection and market competitiveness. "Policy Declaration 2.0" outlines the next stage of development, focusing on enhancing liquidity in digital asset trading and promoting a more diversified supply of digital asset products to strengthen Hong Kong's status as a global digital asset center. The government and regulatory authorities also welcome high-quality digital asset service providers from around the world to participate in the market to promote liquidity and healthy, orderly competition.
To achieve this vision and goal, we aim 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. In formulating these 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 into the real economy and financial systems to achieve sustainable growth. These measures are framed under "LEAP", which includes - ("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 application scenarios and cross-departmental collaboration, and ("P"eople and partnership development) talent and partnership development, to build a trustworthy, innovative, and vibrant digital asset ecosystem that strengthens Hong Kong's leading position in the global financial landscape.
("L"egal and regulatory streamlining) optimize legal and regulatory
(a) A unified and comprehensive regulatory framework
Building on progress made since 2022, the government will continue to collaborate with regulatory bodies 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 custodial 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 custodial service providers, to meet investor demand for high liquidity, large trades, and secure custodial assets. The government proposes to designate the Securities and Futures Commission as the primary regulatory authority for digital asset trading service providers, responsible for licensing and registration matters, establishing 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 regulatory authority 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 regulator 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 framework 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 will be maintained with stakeholders 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 "Prudential Treatment of Crypto Asset Risks", and the OECD'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 with traditional finance, which can drive innovation in economic activity and the structure of financial markets, thereby enhancing efficiency, reducing costs, increasing transparency, and promoting investor participation. To fully realize these potentials, clear, definite, and convenient legal and regulatory frameworks are essential. The Financial Services and the Treasury Bureau and the Monetary Authority will lead the review of relevant laws and regulatory frameworks, referencing international experiences and practices to facilitate further application of tokenization in Hong Kong. The initial focus of the review will be on the bond market, which has already passed the concept verification stage, and it is also hoped to provide a reference 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 outcomes and related improvement recommendations are practical and can meet future development needs, making Hong Kong a pioneer in this innovative field.
("E"xpanding the suite of tokenised products) Expanding the variety of tokenized 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. On this basis, the government will regularize the issuance of tokenized government bonds and will explore arrangements involving different currencies and maturities, as well as other innovative options. The government expects to provide a stable and high-quality digital bond to the market through this initiative, further expanding accessibility and attracting a broader range of investors. To further leverage the advantages of tokenization, the Treasury and the Monetary Authority will continue to communicate with industry experts to understand various market opinions, including those regarding the inclusion of digital currencies to enhance transaction 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 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 (with the SFC as a key partner, jointly leading the participation of the asset management industry), there is active encouragement for innovative application scenarios, including the tokenization of 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 the Ensemble infrastructure to facilitate the settlement of interbank tokenized deposits, simplifying processes and enhancing liquidity.
The London Metal Exchange (LME) has included Hong Kong as a licensed delivery point within its global warehouse network and has approved warehouse operators in Hong Kong to store metals registered under the London Metal Exchange brand. To further develop the commodity trading ecosystem, the government encourages the market to apply tokenization and physical asset tracking technologies in 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 programs, promoting a broader tokenization of assets and financial instruments, showcasing the diverse applications of this technology in 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 tokenization market, the government will clarify that this exemption from stamp duty also applies to tokenized ETFs. On the basis of this exemption, the government welcomes market participants to explore the advantages of tokenizing ETFs, such as money market ETFs, including introducing them for secondary market trading on licensed digital asset trading platforms or other platforms. 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 SFC-recognized funds after tokenization.
The government will submit legislative proposals that will include designated digital assets in qualified transactions for private fund and family investment control tools that are eligible for profits tax exemption. If the proposals are passed by the Legislative Council, the tax exemption will come into effect from the 2025/2026 tax year.
(“A”dvancing use cases and cross-sectoral collaboration) Promoting application scenarios and cross-department collaboration
(e) Support for stablecoins and other tokenized projects, including exploring the use 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 out 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 businesses involved in cross-border trade and settlement services have expressed strong interest in using stablecoins to reduce costs and expedite transaction processes. To fully realize the potential of stablecoins, the government and regulatory bodies will provide a favorable market environment and necessary regulatory guidance to promote the research and implementation of licensed stablecoin issuers in Hong Kong across various application scenarios, addressing substantial pain points in economic activities. To demonstrate the government's support and take the lead, market participants are encouraged to suggest how the government can experiment with and utilize licensed stablecoins, for instance, to enhance the efficiency of government payments.
(f) Promote cooperation among regulatory agencies, law enforcement agencies, and technology providers
As a digital technology incubator in Hong Kong, Cyberport has been actively supporting tokenization projects in Hong Kong and has created 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 digital asset industry stakeholders to leverage its incubation ecosystem, providing support that includes business matching opportunities, technical assistance, industry expert guidance, and participation in accelerator programs related to digital assets and Web3. Startups and companies engaged in tokenization solutions will benefit from specialized resources that enable them to experiment with innovative ideas and commercialize them. Cyberport will also launch a pilot funding program for blockchain and digital assets, providing funding for application projects that have future application potential, are iconic, and have market impact. In addition to funding, Cyberport will also assist these companies and coordinate with relevant stakeholders to support the implementation of pilot projects as needed.
The dedicated team of the Invest Hong Kong welcomes and is ready to support digital asset service providers in establishing and expanding their business in Hong Kong. Among the many supports available, the Invest Hong Kong can connect potential digital asset service providers with banks and various professional and support services, and facilitate their business establishment.
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, to support Hong Kong's development as Asia's leading digital asset hub.
In order 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 technology, cybersecurity, and surveillance solutions with local expertise and deep regional knowledge. These tools will strengthen Hong Kong's regulatory framework and capabilities, promoting the safe and sustainable development of digital assets. The government will promote cooperation among technology providers, regulatory bodies, and law enforcement agencies to optimize these solutions, ensuring they meet the specific needs of Hong Kong's digital asset ecosystem.
(“P”eople and partnership development) Talent and partnership 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, with a particular focus 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 related measures in Web3, blockchain, and artificial intelligence technology training, thereby creating a stable reserve of professional talent, continuously driving innovation, and contributing to the local digital asset industry. These measures include sharing experiences and collaborating with global digital asset companies to provide cutting-edge knowledge for the talent pool.
(h) Position Hong Kong as a center of excellence for knowledge sharing and promote collaboration 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, among others. 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 creativity and expertise. By combining 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, and coordinate the work of local regulatory agencies and law enforcement agencies to support the development of a transparent, secure, and resilient digital asset market. The government will also support and participate in international cooperation alongside regulatory agencies, including through relevant international organizations and establishing memoranda of understanding with regulatory agencies and other government entities 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 opportunities
The "Policy Statement 2.0" represents Hong Kong's determination to leap towards becoming a global leader in the digital asset space. Through a unified regulatory framework, legal and regulatory reviews, the normalization of tokenized government bond issuance, the tokenization of real-world assets and financial products, the promotion of stablecoin application scenarios, strengthening cooperation in regulation, and advancing international collaboration, the government is laying the groundwork for further innovation and market development. Combined with a thriving ecosystem supported by training and project assistance, collaboration between universities and industry, 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 regulators, industry, and society, a future that integrates innovation, confidence, and opportunity will be built, leading Hong Kong towards a new frontier in global digital assets.
Financial Services and the Treasury Bureau, Government of the Hong Kong Special Administrative Region, June 26, 2025 #BTC再创新高#