Hong Kong Launches Policy 2.0 for Global Crypto Hub Status

Hong Kong has introduced a comprehensive digital asset policy aimed at establishing itself as a global hub for crypto and tokenization. The new framework, dubbed “Policy Statement 2.0,” includes the LEAP initiative, which stands for Legal, Expand, Advance, and People. This strategy is designed to enhance the adoption of digital assets while ensuring risk management, regulatory clarity, and innovation across various sectors.

The government, in collaboration with the Financial Services and the Treasury Bureau (FSTB), the Securities and Futures Commission (SFC), and the Hong Kong Monetary Authority (HKMA), is working to create a robust legal and regulatory regime. Key targets include the licensing of digital asset dealing and custodian service providers, a full legal review to support the tokenization of real-world assets (RWAs) such as bonds, metals, and other financial instruments, and the establishment of a unified framework for seamless settlement, registration, and trading of tokenized assets. The SFC will oversee licensing to ensure compliance with investor protection mandates.

One of the most significant developments is the introduction of official licensing for stablecoin issuers, effective from August 1, 2025. This move aims to ensure compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) standards, proper backing of stablecoins with transparent, real-world assets, and risk mitigation for algorithmic or uncollateralized stablecoin models. The government is also seeking proposals from market stakeholders on how licensed stablecoins can be integrated into public sector processes.

Hong Kong is also moving towards the mainstream adoption of tokenized government bonds and ETFs. The government has announced that tokenized government bonds will become a regular issuance tool, positioning the city as one of the first jurisdictions to institutionalize digital bond offerings under regulatory oversight. The region is exploring incentives for tokenizing real-world assets to enhance liquidity, accessibility, and efficiency. Clarification of stamp duty rules on tokenized ETFs will simplify secondary market participation, and trading of these tokenized products will be enabled on licensed digital asset platforms or other regulated channels.

This move aligns with a broader trend where financial instruments, from fixed income to commodities, are increasingly issued in tokenized formats. Large asset managers have already rolled out tokenized funds with on-chain settlement capabilities. Hong Kong’s Policy Statement 2.0 is a bold step towards becoming a leading financial center in Asia, with key milestones including a licensed stablecoin regime starting August 2025, tokenized government bonds and ETFs becoming standard issuance, support for RWA tokenization in both public and private markets, and a legal overhaul for seamless digital asset issuance, transfer, and custody.