Hong Kong has issued the Policy Statement 2.0 on the development of digital assets, reinforcing its commitment to establishing the city as a global hub for innovation in the digital asset field.
The latest statement introduced the "LEAP" framework: legal and regulatory streamlining, expanding the suite of tokenized products, advancing use cases and cross-sectoral collaboration, and people and partnership development, according to a statement published on Thursday.
This new statement builds upon the foundational measures outlined in the initial policy statement released in October 2022.
The city will regularize the issuance of tokenized government bonds and incentivize the tokenization of real-world assets to enhance liquidity and accessibility through initiatives such as clarifying the stamp duty treatment for tokenized exchange traded funds, the statement said.
It will also promote the tokenization of a broader range of assets and financial instruments, demonstrating the versatility of this technology across sectors such as precious metals and non-ferrous metals, and renewable energy, the government said.
To demonstrate support and to take the lead, the authority said it welcomes proposals from market participants on how it may test the usage of licensed stablecoins as the regulation is set to take effect in August.
Also, the Financial Services and the Treasury Bureau and the Securities and Futures Commission will be conducting public consultations on the licensing regimes for digital asset dealing service providers and custodian service providers shortly, according to the statement.
The statement sets out Hong Kong’s vision for digital asset development and showcases the practical use of tokenization through application, with a view to boosting the diversification of use cases, said Financial Secretary Paul Chan Mo-po.
“We strive to build a more flourishing digital asset ecosystem which will integrate the real economy with social life through a prudent regulatory regime and encouragement to market innovation, such that it will bring benefits to both the economy and society while consolidating Hong Kong's leading position as an international financial center," Chan said.
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