TLDR:
- Hong Kong to license stablecoin issuers under new rules effective August 1, 2025.
- LEAP framework to guide crypto platforms, custodians, and tokenized asset development.
- City plans to issue tokenized ETFs and streamline stamp duty rules for secondary trading.
- Government funds blockchain pilots through Cyberport to drive real-world crypto use.
Hong Kong has unveiled a fresh blueprint to advance its digital asset ecosystem and strengthen its standing in global finance.
The government released “Policy Statement 2.0 on the Development of Digital Assets in Hong Kong” on June 26. It outlines a detailed plan to balance innovation with investor protection while unlocking real-world use cases. This follows the city’s first digital asset policy announcement in 2022.
Authorities aim to position Hong Kong as a secure and progressive hub for digital finance.
Hong Kong Updates Crypto and Stablecoin Regulatory Framework
The updated framework introduces the “LEAP” model to shape the digital asset market. It begins by tightening legal structures for digital asset platforms, including stablecoins and custodians.
The Securities and Futures Commission (SFC) will lead new licensing rules for digital asset dealers and custodians. Meanwhile, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority will review legal standards for tokenized assets.
This legal streamlining includes asset registration, settlements, and transaction record-keeping. Stablecoin issuers will also face new licensing requirements starting August 1, creating a path for compliant real-world applications. According to the government, the changes will encourage clarity and improve market integrity.
The Govt issues its “Policy Statement 2.0 on the Development of #DigitalAssets in Hong Kong”, reinforcing a commitment to establishing Hong Kong as a global hub for innovation in the digital asset field #PaulChan #ChristopherHui https://t.co/TtP7wxDZSA
— Hong Kong SAR Government News (@newsgovhk) June 26, 2025
Besides regulatory updates, Hong Kong plans to boost the use of tokenized financial products. The government will continue issuing tokenized bonds and may introduce tokenized exchange-traded funds (ETFs).
Authorities intend to improve stamp duty clarity for tokenized ETFs, enabling smooth secondary trading on licensed platforms.
The policy encourages the digitization of real-world assets such as metals and renewable energy tools. These efforts aim to show how tokenization can increase liquidity and expand access to a wider range of investment products.
Encouraging Real-World Use Cases Through Strategic Partnerships
To support innovation, the city will launch funding schemes for blockchain-based applications through Cyberport.
The goal is to promote scalable, high-impact digital asset use cases. Authorities are also exploring stablecoin adoption by encouraging industry proposals on potential government testing programs.
Additionally, collaboration between regulators, law enforcement, and technology firms will shape critical digital infrastructure. These partnerships are expected to speed up the development of secure and compliant crypto services across sectors.
The policy outlines efforts to develop skilled professionals and support academic partnerships. The aim is to build a sustainable talent pipeline and foster global cooperation. Hong Kong plans to act as a center for digital asset research and cross-border regulatory development.
Financial Secretary Paul Chan said the policy reflects the government’s intention to merge innovation with market safety. Secretary Christopher Hui added that Hong Kong’s position as a financial bridge gives it a key role in the next phase of the digital asset economy.
