New Directions for Digital Asset Development in Hong Kong: Interpretation of "Policy Declaration 2.0"

The "Hong Kong Digital Asset Development Policy Declaration 2.0" was released by the Hong Kong Special Administrative Region Government on June 26, 2025, aiming to establish Hong Kong as a global innovation center in the digital asset field. This policy declaration is an upgrade based on the "Policy Declaration 1.0" released in 2022, and mainly includes the following changes:

• Transform the concept of "virtual assets" into "digital assets"
• Upgrade stablecoins from "tool-type currency" to "infrastructure currency"
• Clarify the implementation of the regulatory system for stablecoin issuers starting from August 1, 2025.
• Promote the tokenization of real-world assets as a key development direction.

The "Policy Declaration 2.0" proposes the LEAP framework, which includes four core pillars:

1. Optimize laws and regulations
2. Expand the variety of tokenized products
3. Promote application scenarios and cross-industry cooperation
4. Talent and Partner Development

In optimizing legal and regulatory aspects, the government is building a unified and comprehensive regulatory framework for digital asset service providers, covering trading platforms, stablecoin issuers, trading service providers, and custody service providers. The Securities Regulatory Commission will become the main regulatory body responsible for licensing management.

In expanding tokenized products, the government will promote the normalization of government bond tokenization and provide incentives for the tokenization of real-world assets, such as clarifying the stamp duty arrangements for tokenized exchange-traded funds.

In promoting application scenarios, the government encourages market participants to propose suggestions on how to experiment with and use licensed stablecoins. Cyberport will launch a blockchain and digital asset pilot funding program to support the development of related startups.

In terms of talent development, the government will collaborate with the industry and academia to promote Hong Kong as a center for digital asset knowledge sharing and international cooperation, nurturing a new generation of entrepreneurs, researchers, and technical experts.

The key content of the "Policy Declaration 2.0" also includes:

• Build a unified and comprehensive regulatory framework that encompasses the key participants in the digital asset ecosystem.
• Conduct a review of laws and regulations related to tokenization
• Provide incentives for the tokenization of real-world assets and financial assets
• Launch of Hong Kong's first digital asset index
• Provide consulting for digital asset service providers by the Ministry of Finance and the Securities Regulatory Commission.

Overall, the "Policy Declaration 2.0" aims to promote the formation and development of Hong Kong's digital asset ecosystem, facilitate the integration of the crypto financial market with traditional capital, and further consolidate Hong Kong's position as an international financial center. The government will create a favorable environment for the development of the digital asset industry through measures such as improving regulation, expanding categories, extending application scenarios, and attracting talent.