Hong Kong Unveils Comprehensive Digital Asset Policy, Assigns SFC as Lead Authority

Hong Kong's Financial Services and the Treasury Bureau (FSTB) has released its Policy Statement 2.0 on the Development of Digital Assets, outlining a comprehensive plan to formalize and expand the region's digital asset regulatory framework. The policy aims to streamline oversight and reduce regulatory gaps across digital asset functions by assigning the Securities and Futures Commission (SFC) as the lead authority for licensing digital asset trading and custody service providers. The Hong Kong Monetary Authority (HKMA) will supervise such activities when conducted by banks, creating a unified structure for crypto licensing.

The new policy also extends tax incentives and policy support to tokenized products. Hong Kong will begin regular issuance of tokenized government bonds and expand efforts to facilitate asset tokenization across sectors, including ETFs, commodities, and renewable energy. A legal review will examine settlement and registration rules to support wider adoption of these tokenized assets. Stablecoin regulation is scheduled to take effect on August 1, 2025, with a framework covering reserve requirements, redemption policies, and risk management. Authorities have also welcomed market proposals for government use of licensed stablecoins in payment processes.

The roadmap addresses talent development and international engagement. Cyberport will launch a funding program for blockchain and digital asset projects, and universities are expected to deepen partnerships with industry to provide training and applied research. The government also plans to support surveillance tools and coordinate with foreign regulators to improve cross-border enforcement. This effort is designed to embed digital assets into the broader economy while maintaining regulatory control, offering a clearer and more certain regulatory framework for the development of the digital asset ecosystem.

Industry leaders have welcomed the plan, noting that it provides a clearer path for real-world asset (RWA) and fund tokenization in financial markets. By tying tokenization to state functions like bond issuance and payments, Hong Kong is using public policy to shape how digital assets are adopted, tested, and scaled across sectors. The policy will be implemented through a “LEAP” structure (legal reform, expansion of tokenized products, applied use cases, and people and partnership developments), which aims to institutionalize digital asset infrastructure and formalize its role in public finance and global market alignment.