Introduction
On June 26, the Hong Kong Special Administrative Region (HKSAR) government released the Hong Kong Digital Asset Development Policy Declaration 2.0, reaffirming its commitment to establishing Hong Kong as a global-leading digital asset hub. The policy emphasizes innovation within a risk-controlled environment, aiming to deliver tangible benefits to the real economy and financial markets.
This strategic move coincides with Singapore tightening regulations on unlicensed crypto firms, creating a potential shift in the region’s Web3 leadership. Analysts predict Hong Kong could emerge as the new Asia-Pacific Web3 center, leveraging Singapore’s regulatory retreat.
Key Policy Directions: The "LEAP" Framework
Hong Kong’s blueprint for digital asset growth is structured around four pillars:
Legal & Regulatory Streamlining
- Public consultation on licensing for digital asset trading and custody providers.
- Designating the Securities and Futures Commission (SFC) as the primary regulator for trading platforms.
- The Hong Kong Monetary Authority (HKMA) will oversee banks’ digital asset activities.
Expanding Tokenized Products
- Focus on tokenized bonds, starting with government-issued bonds.
- Explore tokenization of ETFs, gold, green energy assets, and more.
Advancing Cross-Sector Collaboration
- Promote stablecoin adoption for payments and trade settlements.
- Support RWA (Real-World Asset) tokenization to bridge traditional and digital finance.
Talent & Partnership Development
- Cyberport will launch a blockchain pilot funding scheme for innovative projects.
- Investment promotion teams to assist firms in establishing operations.
Major Initiatives
1. Tokenized Government Bonds
- Regular issuance of tokenized bonds in multiple currencies/maturities.
- Aim: Enhance market liquidity and investor access.
2. Tax Incentives
- Stamp duty exemptions for tokenized ETFs (mirroring traditional ETFs).
- Proposed profits tax exemptions for digital asset funds by 2025/26.
3. Stablecoin Regulation
- Licensing regime for stablecoin issuers effective August 1, 2025.
- Government trials for stablecoin-based payments to improve efficiency.
4. Sandbox for Innovation
- Regulatory sandbox to test cutting-edge applications like asset-backed tokens.
Industry Reactions
Legislator Wu Jiezhuang:
"Hong Kong is poised to become Asia’s digital asset compliance benchmark within 3–5 years, merging traditional finance with Web3."
HashKey Group’s Xiao Feng:
"The reforms integrate Web3 into financial infrastructure, rewriting rules for tokenized assets and custody services."
Financial Secretary Paul Chan:
"Digital assets are a key driver for Hong Kong’s fintech leadership and global financial hub status."
FAQs
Q: How does Hong Kong’s approach differ from Singapore’s?
A: Hong Kong is adopting a pro-innovation stance with clear licensing, while Singapore restricts unlicensed firms, shrinking its Web3 influence.
Q: What are the tax benefits for tokenized ETFs?
A: Tokenized ETFs will enjoy the same stamp duty exemptions as traditional ETFs, alongside potential profits tax waivers.
Q: When will stablecoin regulations take effect?
A: The stablecoin licensing regime goes live on August 1, 2025, with government pilot programs expected.
Conclusion
Hong Kong’s Declaration 2.0 signals a bold leap toward digital asset leadership, combining regulatory clarity, tax incentives, and RWA tokenization. With Singapore’s retreat, Hong Kong is primed to attract global Web3 talent and capital.
👉 Explore Hong Kong’s Web3 opportunities for strategic insights.
Key Terms: Hong Kong digital asset hub, tokenized bonds, stablecoin regulation, RWA tokenization, Web3 Asia-Pacific.