27-6-2025 – Hong Kong has unveiled a comprehensive policy blueprint for the advancement of digital assets. Released on June 26 by the Financial Services and the Treasury Bureau (FSTB), the Policy Statement 2.0 articulates a visionary roadmap to refine and broaden the regulatory landscape for virtual assets, ensuring both robust oversight and economic integration.
Strengthened regulatory oversight: SFC and HKMA at the helm
Central to this ambitious framework is the designation of the Securities and Futures Commission as the primary body tasked with licensing providers of digital asset trading and custody services. Meanwhile, the Hong Kong Monetary Authority will take charge of supervising such operations when undertaken by banking institutions, ensuring a seamless and gap-free regulatory net across the sector.
Hong Kong’s strategy extends beyond mere supervision, embracing innovation through the active promotion of tokenization across diverse domains. The government has committed to the regular issuance of tokenized government bonds, alongside initiatives to enable the tokenization of assets such as exchange-traded funds (ETFs), commodities, and even renewable energy projects. This move is poised to weave digital assets into the fabric of the broader economy, supported by a thorough legal review of settlement and registration mechanisms to facilitate wider uptake.
Stablecoin regulations take effect in August 2025
A pivotal element of the policy is the forthcoming regulation of stablecoins, set to be enforced from August 1, 2025. This framework will encompass stringent requirements for reserves, clear redemption policies, and robust risk management protocols. Additionally, the authorities have expressed openness to integrating licensed stablecoins into government payment systems, reflecting a progressive stance on practical applications.
LEAP framework: Legal, expansion, application, people
The policy, structured under the acronym “LEAP” (legal reform, expansion of tokenized products, applied use cases, and people and partnership developments), underscores a holistic approach to embedding digital assets within Hong Kong’s financial ecosystem. Tian Gan, CEO of China Asset Management (Hong Kong), hailed the initiative as a beacon of clarity, offering a well-defined regulatory path and a strong focus on stablecoins and real-world asset tokenization, with applications spanning multiple sectors.
Further enriching this ecosystem, the government is prioritising talent cultivation and global collaboration. Cyberport is set to introduce a funding scheme for blockchain and digital asset ventures, while local universities will forge closer ties with industry to deliver specialised training and research. On the international front, Hong Kong aims to bolster cross-border enforcement through partnerships with foreign regulators and the development of advanced surveillance mechanisms.
