Hong Kong Releases "Digital Asset Development Policy Declaration 2.0" to Promote Digital Asset Ecosystem Development

On June 26, 2025, the Government of the Hong Kong Special Administrative Region released the "Digital Asset Development Policy Declaration 2.0" (, hereinafter referred to as "Policy Declaration 2.0" ), aimed at making Hong Kong a global innovation center in the field of digital assets. This document further updates and improves the policy and regulatory framework based on the "Policy Declaration 1.0" released in 2022, in order to adapt to the rapid development of the digital asset industry.

The Financial Secretary stated that the "Policy Declaration 2.0" showcases the SAR government's vision for the development of digital assets, demonstrating the practical applications of tokenization through practice and promoting the diversification of application scenarios. The government will combine robust regulation with encouragement of market innovation to build a more prosperous digital asset ecosystem that is closely integrated with the real economy and social life, bringing benefits to the economy and society, while consolidating Hong Kong's leading position as an international financial center.

Main Content of "Policy Declaration 2.0"

Compared to "Policy Declaration 1.0", "Policy Declaration 2.0" has been upgraded in the following aspects:

1. Goal Continuation: Continue to promote Hong Kong as a digital asset innovation center

2. Regulatory Deepening: Improve the regulatory framework for digital asset service providers

3. Key Expansion: Focus on tokenizing real-world assets as a key development direction

4. Scenario Expansion: Promote the normalization of bond tokenization and expand the scope of asset tokenization.

5. Terminology shift: from "virtual asset" to "digital asset"

6. Increase tax incentives: Provide tax benefits for tokenized exchanges buying and selling funds.

Four Core Pillars of the LEAP Framework

The "Policy Declaration 2.0" proposed the LEAP framework, which includes four core pillars:

1. Optimize laws and regulations

Build a unified and comprehensive regulatory framework for digital asset service providers, covering digital asset trading platforms, stablecoin issuers, digital asset trading service providers, and custodial service providers. The Securities Regulatory Commission will serve as the main regulatory body responsible for licensing. The Treasury and the Monetary Authority will lead a comprehensive review of regulations to promote the tokenization of physical assets and financial instruments.

2. Expand the variety of tokenized products

Regularize the issuance of tokenized government bonds to provide incentives for the tokenization of real-world assets. Promote the tokenization of a broader range of assets and financial instruments, such as precious metals, non-ferrous metals, renewable energy, etc.

3. Promote application scenarios and cross-industry cooperation

A regulatory system for stablecoin issuers will be implemented on August 1, 2025. Strengthen cooperation among regulatory agencies, law enforcement agencies, and technology providers to develop digital asset infrastructure. The Cyberport will launch a pilot funding program for blockchain and digital assets.

4. Talent and Partner Development

Collaborate with the industry and academia to promote talent development, positioning Hong Kong as a knowledge-sharing and international cooperation center for digital assets. Establish a sustainable talent pool by nurturing a new generation of entrepreneurs, researchers, and technical experts.

Interpretation of Policy Highlights

1. A unified and comprehensive regulatory framework covering entities such as digital asset exchanges, stablecoin issuers, trading service providers, and custodians.

2. Conduct a review of the legal and regulatory framework for tokenization, involving the issuance of tokenized bonds, trading processes, settlement, registration, and other aspects.

3. Provide incentives for the tokenization of real-world assets and financial assets, promote the construction of digital Hong Kong dollars, and facilitate interbank tokenized deposit settlements.

4. Launch the first batch of digital asset indices in Hong Kong as a price benchmark for Bitcoin and Ethereum in the Asia region.

5. The Finance Bureau and the Securities Regulatory Commission provide consultation for digital asset services.

The "Policy Declaration 2.0" shifts from building a basic framework to pursuing ecological prosperity based on the "Policy Declaration 1.0," and elaborates more precisely on the management direction. If implemented properly, it will contribute to the formation of Hong Kong's digital asset ecosystem and promote a high degree of integration between the cryptocurrency financial market and capital.