Hong Kong Releases New Policies for Digital Asset Development, Aiming to Become a Global Leader in Digital Asset Center

The Hong Kong Special Administrative Region Government released the "Hong Kong Digital Asset Development Policy Declaration 2.0" on June 26, demonstrating its firm determination to build a globally leading digital asset center. The declaration aims to create a trustworthy market that is controllable in risk, vibrant in innovation, and capable of bringing substantial benefits to the real economy and financial markets.

The release of this declaration coincides with the tightening of relevant policies in other regions. Industry insiders believe that the influence of certain regions on the Web3 industry may gradually weaken in the coming years. Some analysts are optimistic about Hong Kong, believing that it is expected to regain its position as the global center for Web3.

The declaration puts forward a series of strategic policy directions and corresponding measures to establish a digital asset ecosystem that is deeply integrated with the real economy and financial markets, oriented towards the future. These measures are framed as "LEAP," including optimizing laws and regulations, expanding the variety of tokenized products, promoting application scenarios and cross-sector collaboration, as well as talent and partner development.

The government plans to conduct public consultations on the licensing mechanism for digital asset trading service providers and custodial service providers. It is recommended that the Securities and Futures Commission be designated as the main regulatory body responsible for licensing, registration, and the formulation of standards, while the Financial Management Authority is responsible for overseeing related activities of banks.

In terms of tokenization, the government will review relevant laws and regulatory frameworks to promote further application of tokenization in Hong Kong. The initial focus will be on the bond market, with plans to normalize the issuance of tokenized government bonds. The government will also clarify that existing stamp duty exemption measures apply to tokenized ETFs and will consider tax arrangements for the transfer of other Securities and Futures Commission-recognized funds through tokenization.

The declaration also mentioned support for stablecoins and other tokenized projects, including exploring the use of stablecoins as a payment tool. Cyberport will launch a blockchain and digital asset pilot funding program to provide funding and support for potential projects.

The Financial Secretary of Hong Kong, Paul Chan, stated that digital assets are an important part of financial technology and have great development potential. By combining prudent regulation with encouragement of innovation, Hong Kong will establish a more prosperous digital asset ecosystem that integrates with the real economy and social life.

The Secretary for Financial Services and the Treasury, Xu Zhengyu, emphasized that Hong Kong's unique advantages give it a first-mover advantage in promoting the transformation of traditional finance into the digital asset era. The new policy provides a clear roadmap for businesses and investors, helping to formulate strategies in a robust and thriving digital asset market.

Industry experts believe that this declaration demonstrates Hong Kong's innovative leadership in the digital asset sector, clearly aiming to balance innovation with risk management and attract high-quality institutions from around the world. Hong Kong is expected to become a benchmark for compliant innovation in digital assets in Asia in the coming years, providing a Hong Kong solution for the integration of global traditional finance and the digital economy.