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 SAR government issued 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 center in the digital asset field.
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 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 digital asset custody service providers.
The "Policy Declaration 2.0" clearly states 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 payment tools.
The "Policy Declaration 2.0" states 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, establishing 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 express strong interest in using stablecoins to reduce costs and accelerate transaction processes. To fully leverage the potential of stablecoins, the government and regulatory bodies will provide a favorable market environment and necessary regulatory guidance, promoting the research and implementation of solutions 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, for example, 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 with future application potential, iconic significance, and market influence.
The following is the full text of the "Policy Declaration 2.0":
Hong Kong Digital Asset Development Policy Declaration 2.0
Vision: To build a trustworthy and innovation-driven digital asset center.
The Hong Kong Special Administrative Region Government is resolutely building Hong Kong into a global leading digital asset center—a market that fosters innovation in a controlled risk environment and brings tangible 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. Adhering to 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.
Based on the measures proposed in the first "Policy Declaration" issued in October 2022, including establishing robust regulation, launching digital asset exchange-traded funds ("ETFs") and other innovative products, expanding investor channels by allowing retail participation, and initiating experimental projects such as green bond tokenization, Hong Kong is now ready to move towards the formation of a trusted, sustainable, and deeply integrated digital asset ecosystem in 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 in an ever-changing environment, implementing a series of measures such as adaptive compliance and product frameworks (e.g., derivatives trading) to achieve a balance between investor protection and market competitiveness. The "Policy Declaration 2.0" outlines the next phase of development, focusing on enhancing liquidity in digital asset trading 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 agencies 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 of creating a digital asset ecosystem that deeply integrates with the real economy and financial markets, and looks towards the future, we propose a series of strategic policy directions and will implement corresponding measures. In formulating policy directions and measures, we strive to ensure 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 by "LEAP", which stands for: ("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-departmental collaboration, and ("P"eople and partnership development) talent and partnership development, to create 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
Based on the 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 custody service providers, with a core focus on investor and consumer protection. The next major 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' needs for high liquidity, large transactions, and secure custody of assets. The government proposes designating the Securities and Futures Commission as 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 ("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 authority for digital asset custodians, 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 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 and close communication with stakeholders will be conducted 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 on 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 Organization for Economic Co-operation and Development's "Crypto Asset Reporting Framework" to promote tax transparency.
(b) A Review of Tokenized Law and Regulation
The tokenization of real-world assets and financial instruments presents opportunities for the integration of new technologies with traditional finance, which can drive economic activity and structural innovation in financial markets, thereby enhancing efficiency, reducing costs, increasing transparency, and promoting investor participation. To fully realize these potentials, clear, explicit, and convenient legal and regulatory frameworks are essential. The Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority will lead the review of relevant laws and regulatory frameworks, referencing international experiences and practices to facilitate further applications of tokenization in Hong Kong. The initial review will focus on the bond market that has already passed the proof of concept stage, and it is also expected to provide references for the tokenization of other real-world assets and financial instruments. A comprehensive examination of the issuance and trading processes of tokenized bonds will be conducted, 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 suggestions 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 value 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 the market with stable and high-quality digital bonds through this move, further expanding accessibility and attracting a broader investor base. To further leverage the advantages of tokenization, the Treasury and Monetary Authority will continue to communicate with industry experts to understand different aspects of market opinions, including incorporating digital currencies to enhance trading efficiency, secondary market trading application scenarios, 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 in the 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 key partner and co-leads the involvement of the asset management industry with the HKMA), it actively encourages innovative application scenarios, including the tokenization of traditional financial products (such as money market funds and other funds) and 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 interbank tokenized deposits, aiming 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 with the London Metal Exchange. To further develop the commodity trading ecosystem, the government encourages the market to apply tokenization and physical asset tracking technologies in storage programs. Token creation technology can serve as an identification tag for global warehouses, assisting in tracking metal assets and related 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 a broader tokenization 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 upon transfer. To promote the development of the tokenized market, the government will clarify that these 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 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 Securities and Futures Commission-recognized funds after tokenization.
The government will submit legislative proposals to include specified digital assets in qualifying transactions for private offerings of funds and family investment control tools that are eligible for profits tax exemptions. If the proposal is passed by the Legislative Council, the tax exemption will take effect from the 2025/2026 tax year.
("A"dvancing use cases and cross-sectoral collaboration) Promoting application scenarios and cross-departmental collaboration
(e) Support stablecoins and other tokenized projects, including exploring the use of stablecoins as a payment tool.
Stablecoins provide a cost-effective alternative outside traditional systems, with the potential to revolutionize payment, 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 realizing 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 leverage the potential of stablecoins, the government and regulatory agencies will provide a favorable market environment and necessary regulatory guidance, promoting licensed stablecoin issuers in Hong Kong to research and implement solutions across different application scenarios to address substantial pain points in economic activities. To demonstrate government support and take a leading role, market participants are encouraged to suggest how the government can experiment with and utilize licensed stablecoins, such as to enhance the efficiency of government payments.
(f) Promote cooperation between regulatory authorities, law enforcement agencies, and technology providers.
As a digital technology incubator in Hong Kong, Cyberport has been strongly supporting Hong Kong's tokenization projects and providing a thriving environment for startups to explore innovative fintech 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 for support, including 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 dedicated resources that enable them to experiment with innovative ideas and commercialize them. Cyberport will also launch a blockchain and digital asset pilot funding program to provide funding for application projects with future application potential, iconic status, and market impact. In addition to 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 many supports available, the Investment Promotion Agency 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 transparent and reliable Bitcoin and Ether price benchmarks within the Asian time zone, to support 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 technology, 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, ensuring 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, with a special focus on blockchain applications, artificial intelligence integration, and digital asset innovation, 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 financial technology professionals, including digital asset professionals from around the world. Next, Cyberport will assist the government in achieving this goal through relevant measures in its Web3, blockchain, and artificial intelligence technology training, thereby creating a stable reserve of professional talent, continuously promoting innovation, and contributing to the local digital asset industry. These measures include experience-sharing sessions and collaborations with global digital asset companies to provide cutting-edge knowledge for the talent pool.
(h) Position Hong Kong as an excellence center 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. Collaborative 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 technology experts, ensuring a continuous flow of creativity and expertise. By aligning academic achievements with industry needs, a sustainable talent pool will be established in Hong Kong to support the goals of digital asset development.
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 through relevant international organizations and establish memorandums of understanding with regulatory agencies and other government institutions in other jurisdictions to achieve information sharing and regulatory cooperation in the digital asset field. At the same time, the government will ensure cooperation between departments through existing high-level internal mechanisms.
Summary: The future of integrated innovation, confidence, and opportunities
The "Policy Statement 2.0" represents Hong Kong's determination to become a global leader in the digital asset space through "LEAP". By establishing a unified regulatory framework, conducting legal and regulatory reviews, regularizing the issuance of tokenized government bonds, expanding the tokenization of real-world assets and financial products, promoting stablecoin use cases, enhancing cooperation in regulation, and encouraging international collaboration, the government is laying the groundwork for further innovation and market development. With a thriving ecosystem supported by training and project assistance, collaboration between universities and the industry, and digital asset infrastructure, Hong Kong will create significant benefits for the global real economy and financial markets. Through the joint efforts of regulatory bodies, the industry, and society, a future that integrates innovation, confidence, and opportunities will be built, leading Hong Kong towards a new frontier in global digital assets.
Financial Services and the Treasury Bureau, Hong Kong Special Administrative Region Government, June 26, 2025 #BTC再创新高#