June 30, 2025
By Our Correspondent
On June 26, Hong Kong’s Financial Services and the Treasury Bureau (FSTB) released its Policy Statement 2.0 on the Development of Digital Assets, detailing the next steps to codify and broaden its regulatory framework for digital assets.
According to the statement, the Securities and Futures Commission should be designated as the primary licensing body for digital asset trading and custody service providers, with the Hong Kong Monetary Authority overseeing such operations when banks engage in them.
The goal of the new, unified structure, according to the government, is to close regulatory gaps and expedite monitoring across digital asset operations.
Tokenized items will also be eligible for tax breaks and policy support.
In addition to increasing efforts to support asset tokenization across industries, such as ETFs, commodities, and renewable energy, Hong Kong will start regularly issuing tokenized government bonds.
According to the paper, in order to facilitate broader adoption, a legal study will look at registration and settlement regulations.
On August 1, 2025, stablecoin regulation is expected to go into force, with a framework that addresses risk management, redemption procedures, and reserve requirements. Proposals from the market for the government to employ approved stablecoins in payment procedures were also well received by authorities.
The roadmap covered worldwide engagement and talent development. Universities are anticipated to strengthen their relationships with business to offer training and applied research, while Cyberport will start a funding program for blockchain and digital asset ventures.
To strengthen cross-border enforcement, the government also intends to collaborate with international regulators and promote surveillance techniques.
In order to integrate digital assets into the larger economy while preserving regulatory control, the FSTB stated that the policy will be executed through a “LEAP” framework, which includes legal reform, the growth of tokenized products, applied use cases, and people and partnership developments.
Tian Gan, CEO of China Asset Management (Hong Kong), stated, “It provides a clearer, more certain regulatory framework and policy direction on the development of DA ecosystem, including a strong emphasis on stablecoin and other tokenization projects like RWA, tokenized funds, and their cross-sectoral applications.”
Hong Kong is employing public policy to influence the adoption, testing, and scaling of digital assets across industries by linking tokenization to governmental operations such as bond issuance and payments.
Would this new structure entice companies that deal in digital assets to move to Hong Kong?
Businesses looking for a more organized environment in Asia would find the funding initiatives, possible tax benefits, and regulatory clarity appealing.
How do commodities and tokenized ETFs fit into Hong Kong’s long-term plan?
The strategy brings digital infrastructure to well-known markets by permitting the tokenization of historically liquid assets, which may act as test markets for wider adoption.
What potential effects might international coordination have on investor safeguards and enforcement?
The establishment of legally binding standards for the conduct of digital assets across borders may be facilitated by Hong Kong’s involvement in bilateral cooperation agreements and standard-setting organizations.
