Hong Kong Unveils LEAP Framework to Drive Digital Asset Growth

Hong Kong's government has released the Digital Asset Development Policy Declaration 2.0, a comprehensive framework known as "LEAP" designed to drive changes and foster growth in the digital asset market. The declaration, unveiled on June 26, 2025, aims to create a trusted and innovative digital asset ecosystem that prioritizes risk management and investor protection. The government seeks to position Hong Kong as a global leader in digital asset innovation, ensuring the region remains competitive on the international stage.

Financial Secretary Paul Chan emphasized that the "Policy Declaration 2.0" reflects the government's strategic vision for the development of digital assets. The declaration is part of a broader effort to leverage digital technologies to drive economic growth and innovation. By implementing the LEAP framework, the government aims to create a supportive environment for digital asset businesses, encouraging investment and fostering technological advancements.

The new policy statement is expected to have a profound impact on the digital asset landscape in Hong Kong. By prioritizing risk management and investor protection, the government aims to build trust and confidence in the digital asset market. This, in turn, is likely to attract more investors and businesses to the region, further solidifying Hong Kong's position as a global hub for digital asset innovation.

The government's commitment to digital inclusion is evident in the declaration. Initiatives such as the "Smart Silver" ICT Outreach Programme for Elders aim to promote digital literacy among the elderly population. This program, along with other digital inclusion efforts, will help ensure that the benefits of digital asset development are accessible to all segments of society.

The declaration also includes a new licensing system that encourages digital asset market integration. This system is expected to enhance regulatory clarity and foster growth in the digital asset sector, further cementing Hong Kong's role as a major financial hub. The policy aligns with ongoing efforts to promote regulated stablecoin development and integrate digital assets in local and global markets.

The digital asset market is expected to see positive developments, particularly affecting Ethereum (ETH). The policy is projected to prompt increased DeFi innovations, particularly on Ethereum, owing to its scalable tokenization framework. With strategic licensing and clear regulations, the region could see significant technological and financial advancements.

In summary, the "Digital Asset Development Policy Declaration 2.0" represents a significant milestone in Hong Kong's digital asset policy. By introducing the LEAP framework and prioritizing risk management and investor protection, the government is poised to drive growth and innovation in the digital asset market. The declaration underscores the region's commitment to becoming a global leader in digital asset development, with a focus on creating a trusted and inclusive digital ecosystem.