Hong Kong Issues New Digital Asset Policy to Promote "LEAP" Framework

The Government of the Hong Kong Special Administrative Region recently announced the "Hong Kong Digital Asset Development Policy Declaration 2.0", reaffirming its determination to build Hong Kong into a global innovation center for digital assets. This new policy is based on the first declaration from October 2022 and introduces the "LEAP" framework, focusing on optimizing regulations, expanding tokenized products, advancing application scenarios and cross-industry collaboration, as well as talent and partnership development. Its goal is to create a trustworthy, sustainable digital asset ecosystem that is deeply integrated with the real economy.

"LEAP" Framework: Promoting the Integration of Digital Assets Innovation and the Real Economy

The "LEAP" framework clarifies Hong Kong's strategic direction in the digital asset field, aiming to balance innovation and risk management, and provide a clear development roadmap for businesses and investors. The framework includes four key areas:

1. Optimize laws and regulations

The Hong Kong government is working to establish a comprehensive regulatory framework that covers digital asset trading platforms, stablecoin issuers, trading service providers, and custody service providers. The Securities and Futures Commission will act as the main regulatory body responsible for formulating relevant licensing mechanisms. In addition, the relevant departments will conduct a comprehensive review of the existing laws to promote the tokenization of real-world assets and financial instruments.

2. Expand the variety of tokenized products

The government plans to promote the tokenization of real-world assets by regularizing the issuance of tokenized government bonds and providing incentives, thereby enhancing market liquidity and accessibility. In the future, tokenized exchange-traded funds are expected to be traded in the secondary market through licensed digital asset trading platforms. The government will also encourage broader asset tokenization, covering diverse fields such as precious metals, non-ferrous metals, and renewable energy.

3. Promote application scenarios and cross-industry cooperation

Hong Kong will implement a licensing mechanism for stablecoin issuers on August 1, 2025, providing regulatory support for the application of stablecoins in areas such as payments, supply chain management, and capital markets. The government welcomes market participants to propose innovative suggestions to explore more application scenarios. At the same time, the government will strengthen collaboration among all parties to jointly develop digital asset infrastructure. A pilot funding program for blockchain and digital assets has been launched, offering grants of up to HKD 500,000 for promising projects.

4. Talent and Partner Development

The government will collaborate with the industry and academia to cultivate a new generation of entrepreneurs, researchers, and technical experts, establishing a sustainable talent pool. Hong Kong is positioned as an excellent center for digital asset knowledge sharing and international cooperation, promoting technological innovation and experience exchange through joint research programs and global regulatory collaboration.

The Vision of Leadership and Hong Kong's Unique Advantages

Financial Secretary Paul Chan emphasized that digital assets are an important component of financial technology, and the new policy showcases Hong Kong's vision for the development of digital assets. Secretary for Financial Services and the Treasury Christopher Hui pointed out that Hong Kong's unique advantages give it a head start in promoting the transformation of traditional finance into the digital asset era.

Hong Kong's Global Digital Asset Leadership

Since the implementation of the virtual asset trading platform licensing system in June 2023, Hong Kong has granted licenses to several platforms to ensure market transparency and investor protection. The Stablecoin Ordinance, passed in May 2025, further improves the regulatory framework and is set to take effect on August 1. Through the "LEAP" framework, Hong Kong is not only committed to local market innovation but also actively participates in global regulatory collaboration, attracting a large number of virtual asset-related companies expressing interest in establishing business in the region.

Conclusion

The "Hong Kong Digital Asset Development Policy Declaration 2.0" showcases Hong Kong's ambition and foresight in the digital asset field through the "LEAP" framework. With a robust regulatory environment, diverse application scenarios, and strong talent support, Hong Kong is moving towards its goal of becoming a global center for digital asset innovation, injecting new momentum into the real economy while consolidating its position as an international financial center.