Hong Kong Unveils Comprehensive Digital Asset Policy to Boost Industry Growth

Coin WorldThursday, Jun 26, 2025 12:03 pm ET
2min read

China Hong Kong's government has released its second major policy statement on digital assets, emphasizing its commitment to establishing the region as a global hub for the industry. The policy statement, titled 'Policy Statement 2.0 on Development of Virtual Assets,' outlines a strategic plan to regulate the crypto industry while encouraging the growth of tokenization. The framework will be overseen by the Securities and Futures Commission and will apply to custodians, digital asset service providers, exchanges, and stablecoins. Public consultations on the licensing regimes will commence shortly.

Ask Aime: What's the impact of China's 'Policy Statement 2.0' on Hong Kong's crypto market?

The government aims to create a unified and comprehensive regulatory framework that focuses on risk management and investor protection. This framework will cover various aspects of the digital asset ecosystem, ensuring that all service providers operate within a clear and consistent set of guidelines. The goal is to streamline legal and regulatory processes to facilitate the growth of the digital asset industry while protecting investors and maintaining market integrity.

One of the key objectives of the policy statement is to promote the tokenization of a broader range of assets and financial instruments. Tokenization involves converting real-world assets into digital tokens that can be traded on blockchain platforms. This technology has the potential to revolutionize traditional financial markets by increasing liquidity, reducing transaction costs, and enhancing transparency. The government plans to support the expansion of Real-World Asset (RWA) tokenization, which includes the issuance of tokenized government bonds and other financial instruments.

The policy statement also highlights the government's commitment to supporting stablecoin-related projects. Stablecoins are cryptocurrencies designed to maintain a stable value, often pegged to a reserve asset such as the US dollar. By encouraging the development of stablecoins, the government aims to provide a more stable and reliable medium of exchange for digital transactions, which can help to reduce volatility and increase adoption.

In addition to regulating digital asset service providers and promoting tokenization, the government plans to expand the application of tokenized products. This includes the regular issuance of tokenized government bonds and other financial instruments, which can help to diversify investment options and attract more participants to the digital asset market. The government's support for tokenized products is part of a broader strategy to position China Hong Kong as a major hub for digital assets, attracting global investors and fostering innovation in the region.

The policy statement also outlines plans to support the development of the Web3 ecosystem, which refers to the next generation of the internet built on blockchain technology. The government aims to create a supportive environment for Web3 projects, including decentralized applications (dApps) and non-fungible tokens (NFTs). By fostering the growth of the Web3 ecosystem, the government hopes to drive innovation and create new economic opportunities in the digital asset industry.

Overall, the government's second policy statement on digital assets represents a significant step forward in its efforts to regulate the crypto industry and promote the growth of tokenization. By establishing a comprehensive regulatory framework and supporting the development of stablecoins and tokenized products, the government aims to create a more stable and reliable digital asset market that can attract global investors and drive innovation in the region. The government's proactive approach to regulating the digital asset industry is expected to enhance investor confidence and foster the growth of the sector, positioning China Hong Kong as a leading global hub for digital assets.