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Bitcoinist 2025-06-27 04:00:22

Hong Kong Doubles Down on Crypto: Tokenized Assets and Licensing Surge Ahead

The Hong Kong government has released a new policy statement aimed at advancing its crypto asset ecosystem, reinforcing its ambition to become a key hub for crypto innovation and regulation. Titled “Policy Statement 2.0,” the initiative builds on the region’s first digital asset policy introduced in October 2022 and outlines an updated framework for regulating and supporting the tokenization of real-world assets (RWAs) and expanding crypto licensing measures. Regulatory Clarity and Broader Tokenization Initiatives The updated strategy introduces the “LEAP” framework, which stands for “Licensing, Education, Application, and Protection.” The government plans to streamline regulatory oversight for crypto service providers, including exchanges, stablecoin issuers, and custodians. At the same time, the statement sets out goals for scaling RWA tokenization through legal clarity, new infrastructure, and public-private collaboration. Hong Kong Financial Secretary Paul Chan emphasized the importance of blockchain in enabling lower-cost and more inclusive financial services. Under the policy, the Securities and Futures Commission (SFC) will serve as the lead authority on upcoming licensing regimes for digital asset dealers and custodians . In parallel, the Financial Services and the Treasury Bureau (FSTB), in coordination with the Hong Kong Monetary Authority (HKMA), will conduct legal reviews to ease the path for RWA tokenization. The government also intends to standardize the issuance of tokenized government bonds and develop new tax guidelines for tokenized exchange-traded funds (ETFs), aiming to support both primary issuance and secondary market trading. Beyond financial instruments, Hong Kong’s policy looks to incentivize tokenization across sectors, including precious metals, non-ferrous metals, and renewable energy. These steps are designed to enhance market liquidity, improve accessibility, and foster innovation in asset management. Public consultations on the proposed licensing structures are expected soon, with the FSTB and SFC leading efforts to incorporate industry input into the development of these frameworks. Cross-Sector Collaboration and Stablecoin Oversight As part of the broader plan to expand crypto asset infrastructure, the Hong Kong government is encouraging collaboration between regulators, law enforcement agencies , and technology providers. This includes initiatives to boost security, interoperability, and use case development across both the public and private sectors. The goal is to create a more strong and scalable foundation for crypto asset adoption across industries. In addition to the new policy, earlier developments have laid groundwork for Hong Kong’s approach to crypto regulation. In May, the Legislative Council passed legislation to establish a licensing regime for stablecoin issuers, set to take effect on August 1. Financial Secretary Chan noted that this move will support Hong Kong’s broader financial strategy, including its ambitions to serve as an offshore yuan hub. Industry participants such as Eugene Cheung of OSL Group have welcomed the changes, describing them as aligned with global trends in tokenization and financial digitization. Featured image created with DALL-E, Chart from TradingView

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