The Hong Kong Digital Asset Development Policy Declaration 2.0 (hereinafter referred to as Policy Declaration 2.0), released by the Hong Kong Special Administrative Region (HKSAR) government on June 26, 2025, aims to position Hong Kong as a global innovation hub for digital assets, further updating and refining existing policies and regulatory frameworks to keep pace with the rapid development of the digital asset industry.

Financial Secretary Paul Chan Mo-po stated that Policy Declaration 2.0 reflects the government’s vision for digital asset development, demonstrating practical applications of tokenization and diversifying use cases. By balancing prudent regulation with market innovation, Hong Kong seeks to build a thriving digital asset ecosystem integrated with the real economy and social life, reinforcing its status as a leading international financial center.

With the release of Policy Declaration 2.0, several questions arise:

• What was Policy Declaration 1.0?

• How does 2.0 relate to 1.0?

• What are the key points of 2.0?

• What is Hong Kong’s stance on digital asset development?

The Crypto Salad team will dissect the critical aspects of Policy Declaration 2.0 across multiple dimensions, tracing Hong Kong’s evolution from "Virtual Assets 1.0" to "Digital Assets 2.0."

The Policy Declaration on Virtual Asset Development in Hong Kong (Policy Declaration 1.0), issued in 2022, outlined the HKSAR government’s vision for fostering a dynamic virtual asset ecosystem. Key elements included:

• Regulatory frameworks for virtual assets.

• Pilot projects like green bonds and the digital Hong Kong dollar (e-HKD).

• Future prospects for virtual assets.

Policy Declaration 2.0 builds upon its predecessor with significant advancements:

• Terminology shift: "Virtual assets" → "Digital assets."

• Stablecoin upgrade: From "utility tokens" to "infrastructure currency," with a regulatory regime for issuers effective August 1, 2025.

• RWA focus: Tokenization of real-world assets (RWAs) as a core industry direction, bridging digital and physical economies.

(Table: Key differences between Policy Declaration 1.0 and 2.0 omitted for brevity.)

The transition to "digital assets" reflects broader acceptance among policymakers, institutional investors, and crypto-native players—signaling a new era for the industry.

To address regulatory gaps in emerging sectors like RWAs and digital assets, Policy Declaration 2.0 introduces the LEAP framework:

Hong Kong is establishing a unified regulatory framework covering:

• Digital asset trading platforms.

• Stablecoin issuers.

• Digital asset service providers (e.g., trading, custody).
  The Securities and Futures Commission (SFC) will lead licensing, while the Financial Services and the Treasury Bureau (FSTB) and Hong Kong Monetary Authority (HKMA) will review laws to facilitate RWA tokenization.

Initiatives include:

• Routine issuance of tokenized government bonds.

• Tax incentives (e.g., stamp duty exemptions for tokenized ETFs).

• Broader asset tokenization (precious metals, renewables, etc.).

Key actions:

• Stablecoin licensing (effective August 1, 2025).

• Public-private partnerships: Regulatory agencies, tech providers, and law enforcement collaborating on digital asset infrastructure.

• Funding for blockchain startups via Cyberport’s pilot grant scheme.

Hong Kong aims to:

• Position itself as a hub for digital asset knowledge-sharing.

• Attract global talent through programs like "Top Talent Pass."

• Foster joint research and international regulatory cooperation.

Four critical entities are regulated:

• Digital asset exchanges (requiring SFC licenses).

• Stablecoin issuers (governed by the Stablecoin Ordinance).

• Digital asset service providers (under the Securities and Futures Ordinance).

• Custodians.

Focus areas:

• Tokenized bond issuance, trading, and settlement.

• HK$6.8 billion in tokenized green bonds already issued by the government.

• Digital Hong Kong dollar (e-HKD) development prioritized.

• Tokenization of commodities (e.g., gold, renewables) for supply chain finance.

• London Metal Exchange (LME) now recognizes Hong Kong as a delivery location.

The Hong Kong Exchanges and Clearing Limited (HKEX) has launched digital asset indices to serve as benchmark prices for Bitcoin and Ethereum in Asia.

Ongoing consultations aim to streamline operations for digital asset service providers.

Hong Kong’s Policy Declaration 2.0 marks a strategic leap from experimental virtual asset policies to a structured digital asset economy. By integrating RWAs, stabilizing regulations, and fostering talent, Hong Kong is cementing its role as a global digital finance leader.

Key Dates:

• August 1, 2025: Stablecoin licensing takes effect.

• 2025–2026: Expansion of tokenized government bonds and ETFs.

(Charts: RWA market size, regulatory timelines omitted for brevity.)

Data Snapshot:

• Stablecoin reserves: Regulated under Stablecoin Ordinance.

• Tokenized green bonds: HK$6.8B issued.

• Digital asset indices: Launched by HKEX.

From "Crypto Wild West" to institutional-grade infrastructure—Hong Kong’s 3-year pivot is reshaping finance.

The Hong Kong Digital Asset Development Policy Declaration 2.0 (hereinafter referred to as Policy Declaration 2.0), released by the Hong Kong Special Administrative Region (HKSAR) government on June 26, 2025, aims to position Hong Kong as a global innovation hub for digital assets, further updating and refining existing policies and regulatory frameworks to keep pace with the rapid development of the digital asset industry.

Financial Secretary Paul Chan Mo-po stated that Policy Declaration 2.0 reflects the government’s vision for digital asset development, demonstrating practical applications of tokenization and diversifying use cases. By balancing prudent regulation with market innovation, Hong Kong seeks to build a thriving digital asset ecosystem integrated with the real economy and social life, reinforcing its status as a leading international financial center.

With the release of Policy Declaration 2.0, several questions arise:

• What was Policy Declaration 1.0?

• How does 2.0 relate to 1.0?

• What are the key points of 2.0?

• What is Hong Kong’s stance on digital asset development?

The Crypto Salad team will dissect the critical aspects of Policy Declaration 2.0 across multiple dimensions, tracing Hong Kong’s evolution from "Virtual Assets 1.0" to "Digital Assets 2.0."

The Policy Declaration on Virtual Asset Development in Hong Kong (Policy Declaration 1.0), issued in 2022, outlined the HKSAR government’s vision for fostering a dynamic virtual asset ecosystem. Key elements included:

• Regulatory frameworks for virtual assets.

• Pilot projects like green bonds and the digital Hong Kong dollar (e-HKD).

• Future prospects for virtual assets.

Policy Declaration 2.0 builds upon its predecessor with significant advancements:

• Terminology shift: "Virtual assets" → "Digital assets."

• Stablecoin upgrade: From "utility tokens" to "infrastructure currency," with a regulatory regime for issuers effective August 1, 2025.

• RWA focus: Tokenization of real-world assets (RWAs) as a core industry direction, bridging digital and physical economies.

(Table: Key differences between Policy Declaration 1.0 and 2.0 omitted for brevity.)

The transition to "digital assets" reflects broader acceptance among policymakers, institutional investors, and crypto-native players—signaling a new era for the industry.

To address regulatory gaps in emerging sectors like RWAs and digital assets, Policy Declaration 2.0 introduces the LEAP framework:

Hong Kong is establishing a unified regulatory framework covering:

• Digital asset trading platforms.

• Stablecoin issuers.

• Digital asset service providers (e.g., trading, custody).
  The Securities and Futures Commission (SFC) will lead licensing, while the Financial Services and the Treasury Bureau (FSTB) and Hong Kong Monetary Authority (HKMA) will review laws to facilitate RWA tokenization.

Initiatives include:

• Routine issuance of tokenized government bonds.

• Tax incentives (e.g., stamp duty exemptions for tokenized ETFs).

• Broader asset tokenization (precious metals, renewables, etc.).

Key actions:

• Stablecoin licensing (effective August 1, 2025).

• Public-private partnerships: Regulatory agencies, tech providers, and law enforcement collaborating on digital asset infrastructure.

• Funding for blockchain startups via Cyberport’s pilot grant scheme.

Hong Kong aims to:

• Position itself as a hub for digital asset knowledge-sharing.

• Attract global talent through programs like "Top Talent Pass."

• Foster joint research and international regulatory cooperation.

Four critical entities are regulated:

• Digital asset exchanges (requiring SFC licenses).

• Stablecoin issuers (governed by the Stablecoin Ordinance).

• Digital asset service providers (under the Securities and Futures Ordinance).

• Custodians.

Focus areas:

• Tokenized bond issuance, trading, and settlement.

• HK$6.8 billion in tokenized green bonds already issued by the government.

• Digital Hong Kong dollar (e-HKD) development prioritized.

• Tokenization of commodities (e.g., gold, renewables) for supply chain finance.

• London Metal Exchange (LME) now recognizes Hong Kong as a delivery location.

The Hong Kong Exchanges and Clearing Limited (HKEX) has launched digital asset indices to serve as benchmark prices for Bitcoin and Ethereum in Asia.

Ongoing consultations aim to streamline operations for digital asset service providers.

Hong Kong’s Policy Declaration 2.0 marks a strategic leap from experimental virtual asset policies to a structured digital asset economy. By integrating RWAs, stabilizing regulations, and fostering talent, Hong Kong is cementing its role as a global digital finance leader.

Key Dates:

• August 1, 2025: Stablecoin licensing takes effect.

• 2025–2026: Expansion of tokenized government bonds and ETFs.

(Charts: RWA market size, regulatory timelines omitted for brevity.)

Data Snapshot:

• Stablecoin reserves: Regulated under Stablecoin Ordinance.

• Tokenized green bonds: HK$6.8B issued.

• Digital asset indices: Launched by HKEX.

From "Crypto Wild West" to institutional-grade infrastructure—Hong Kong’s 3-year pivot is reshaping finance.