Hong Kong Unveils Digital Asset Policy 2.0 to Boost Global Hub Status

On June 26, 2025, the Hong Kong Special Administrative Region government released "Digital Asset Development Policy Declaration 2.0," marking a significant milestone in the region's digital asset strategy. This new policy aims to solidify Hong Kong's position as a global digital asset hub, promoting market innovation and integration with the real economy. The declaration builds upon the previous 2022 policy, with a renewed focus on tokenization and regulatory coherence.

The Policy Declaration 2.0 introduces a comprehensive framework designed to drive changes in the digital asset market. This framework, known as "LEAP," encompasses risk management and investor protection strategies. The goal is to create a more dynamic ecosystem that increases investor involvement and economic benefits. Financial Secretary Paul Chan and Christopher Hui, Secretary for Financial Services and the Treasury, are leading figures in this initiative, emphasizing the importance of regulatory clarity and market integration.

Industry reactions to the new policy have been significant. Paul Chan highlighted the new opportunities that the policy presents, both locally and globally, reflecting a future of expansive digital growth. Regulatory agencies, such as the Securities and Futures Commission, plan to consult on licensing regimes soon, further echoing the policy's forward-thinking nature. As Paul Chan stated, "Hong Kong’s digital asset landscape is evolving, creating opportunities in both local and global markets."

The Policy Declaration 2.0 also addresses the need for a robust regulatory framework to support the growth of digital assets. The region has introduced a new company re-domiciliation regime, which provides guidelines for businesses looking to relocate their operations. This regime outlines eligibility criteria and compliance issues that businesses need to consider, ensuring a smooth transition for companies seeking to establish themselves in the region.

One of the key components of the Policy Statement 2.0 is the introduction of the 'Smart Silver' program. This initiative is designed to enhance digital skills among the elderly population, ensuring that they are equipped to navigate the digital landscape and benefit from the advancements in technology. By empowering this demographic, the region aims to create a more inclusive digital society where everyone can participate in the digital economy.

The Policy Statement 2.0 also highlights the potential of tokenized funds in the investment industry. Tokenized funds offer several benefits, including increased liquidity, lower costs, and greater accessibility. By leveraging blockchain technology, these funds can provide investors with a more efficient and transparent way to manage their assets. However, the industry must also address challenges such as regulatory compliance and security to fully realize the potential of tokenized funds.

The Policy Statement 2.0 represents a significant step forward in the region's efforts to become a global leader in digital asset development. By fostering innovation, enhancing digital skills, and providing a supportive regulatory environment, the region is well-positioned to attract investment and drive economic growth. As the digital asset industry continues to evolve, the initiatives outlined in the Policy Statement 2.0 will play a crucial role in shaping the future of the digital economy.