Hong Kong SAR Government released the "Hong Kong Digital Asset Development Policy Declaration 2.0" (referred to as Declaration 2.0) in June 2025, marking a strategic deepening phase in establishing itself as a "globally leading digital asset hub." This upgraded framework emphasizes regulatory restructuring, international standard compliance, and safe institutional investor participation, striking a balance between innovation encouragement and risk management.
Vision & Positioning: Trusted Innovation Hub
Declaration 2.0 positions Hong Kong as a "trusted and innovation-driven digital asset center" with three core principles:
- Risk-Controlled Innovation: Promoting advancement within a secure regulatory environment.
- Real-Economy Integration: Ensuring digital assets serve tangible economic and financial market needs.
- Global Compliance: Aligning with international standards to foster market trust.
To achieve this, Hong Kong introduced the "LEAP" framework:
| Pillar | Focus Area |
|---|---|
| L (Legal & Regulatory Streamlining) | Optimized laws and transparent licensing (e.g., unified SFC licensing for exchanges/custodians). |
| E (Expanding Tokenised Products) | Broadening tokenized assets (e.g., bonds, RWAs like commodities/renewables). |
| A (Advancing Use Cases) | Cross-sector collaboration (e.g., HKMA’s Ensemble Project for interbank tokenized settlements). |
| P (People & Partnerships) | Talent development and global alliances (e.g., Web3 training at Cyberport). |
This shift signifies a transition from market-building to ecosystem cultivation, linking tech, finance, and实体经济.
Regulatory Upgrades: Ending Fragmentation
1. Unified Licensing & Oversight
- Full-chain coverage: Licensing for exchanges, stablecoin issuers, custodians, and trading platforms.
- Clear mandates: Securities and Futures Commission (SFC) oversees trading/custody; HKMA regulates bank-linked digital asset activities.
- Public consultations (2025) to consolidate licenses and eliminate arbitrage gaps.
2. "Same Activity, Same Risk, Same Rules"
Traditional financial institutions gain clarity for compliant entry, with equal treatment for comparable risks.
3. Global Standard Adoption
Hong Kong commits to:
- IOSCO’s crypto-market policies
- FSB’s global regulatory framework
- BCBS’s crypto-risk guidelines
- OECD’s tax transparency protocols
This enhances cross-border interoperability and institutional confidence.
Institutional Adoption: Removing Bottlenecks
Asset Safety
- SFC sets custody standards (e.g., private-key management, asset segregation).
- HKMA supervises bank custodians, ensuring institutional-grade security.
Liquidity & Market Depth
- Block trading support under new rules.
- Digital asset indices (e.g., Hang Seng Bitcoin/Ethereum Indices) launched by HKEX.
- Tokenized deposit settlements via Ensemble Project.
Tax Incentives
- Stamp-duty exemption for tokenized ETFs.
- Profits-tax waivers for qualifying digital asset funds (effective 2025/26).
High-Quality Assets
- Routine tokenized bond issuances (HKD 6.8bn green bonds piloted).
- RWA expansion: Precious metals, renewables, and LME warehouse receipts.
Innovation vs. Stability: Hong Kong’s Balancing Act
Pro-Innovation Measures
- Sandbox programs: Regulatory flexibility for pilots (e.g., Cyberport’s blockchain grants).
- Infrastructure: HKMA’s Ensemble supports tokenized settlements.
- 👉 Explore Hong Kong’s digital asset initiatives for institutional tools.
Risk Controls
- Stablecoin rules (effective Aug 2025): Reserve audits and redemption safeguards.
- RegTech collaborations: Local solutions for AML/CFT monitoring.
- Cross-border MOUs: Joint supervision with global counterparts.
Talent & Knowledge Ecosystem
- Local upskilling: University courses (blockchain/AI integration) and Cyberport accelerators.
- Global recruitment: "FinTech professionals" retained on talent list.
- Research hubs: Industry-academia partnerships on tokenization frameworks.
Conclusion: A Global Benchmark
Declaration 2.0 is a strategic leap offering:
- Institutional-ready infrastructure via unified rules and tax clarity.
- A "golden balance" between innovation and compliance.
- Real-world asset tokenization as a sustainable growth driver.
Hong Kong’s model could redefine global standards, proving that financial leadership and digital asset innovation are not mutually exclusive. 👉 Learn more about institutional entry pathways.
FAQ Section
Q1: How does Hong Kong’s stablecoin regulation compare globally?
A1: Its 2025 framework aligns with FSB standards, requiring audited reserves and redemption guarantees—similar to EU’s MiCA but with localized SFC oversight.
Q2: What tax benefits apply to tokenized ETFs?
A2: They enjoy stamp-duty exemptions like traditional ETFs, reducing transaction costs by ~0.1%.
Q3: Can foreign investors access Hong Kong’s tokenized bonds?
A3: Yes, multi-currency issuances (e.g., HKD/USD) target global institutional demand.
Q4: How does the SFC ensure custody safety?
A4: Licensed custodians must comply with cold-storage mandates and insurance requirements.
Q5: What’s next for RWA tokenization?
A5: Focus includes solar-energy revenue rights and LME metal contracts—bridging DeFi and commodities.