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Hong Kong is making it clear it wants to lead the next wave of digital finance. On June 26, the city’s government released its much-anticipated Policy Statement 2.0 on the development of digital assets, an update to its original 2022 plan. This new strategy reaffirms Hong Kong’s commitment to becoming a global crypto and tokenisation hub, with a bold framework built around regulation, innovation, and adoption.
A Refined Vision for Crypto Growth
At the heart of the policy is a new framework called LEAP, which stands for Legal clarity, Expanding tokenised products, Advancing use cases, and People development. It’s a well-rounded strategy designed to balance innovation with investor protection. The city is setting up comprehensive rules to govern exchanges, stablecoin issuers, and custodians. The Securities and Futures Commission will soon lead licensing efforts, while the Monetary Authority works on removing legal hurdles to real-world asset tokenisation, including bonds and ETFs.
Tokenisation Takes Center Stage
The Hong Kong government is also pushing for the regular issuance of tokenised government bonds and wants to encourage the tokenisation of other assets like gold, metals, and even renewable energy products. Plans to allow secondary market trading of tokenised ETFs on licensed platforms signal an intent to build a truly active market.
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Bringing Use Cases to Life
The upcoming stablecoin licensing regime, set to launch on August 1, is aimed at unlocking real-world adoption. Authorities are encouraging cross-sector collaboration, from regulators to tech providers, and are backing it up with funding via Cyberport to support high-impact blockchain projects. These initiatives are designed to demonstrate how digital assets can integrate with the real economy.
A Global Crypto Knowledge Hub
Hong Kong also wants to be a center for crypto expertise. It plans to grow local talent through academic and industry partnerships while also positioning itself as a leader in international cooperation and research in digital finance.
With clear direction, regulatory clarity, and government backing, Hong Kong is sending a strong message to the crypto community that it’s ready to lead the global shift into digital assets, not just support it from the sidelines.
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FAQs
LEAP stands for Legal clarity, Expanding tokenised products, Advancing use cases, and People development, aiming for balanced innovation and investor protection.
Yes, Hong Kong is highly crypto-friendly. It’s actively establishing itself as a global crypto hub with comprehensive regulations and a clear commitment to fostering digital asset innovation.
Hong Kong has a competitive tax regime. There is no capital gains tax on cryptocurrencies for individuals. Profits from frequent trading as a business activity, however, are subject to progressive income tax rates up to 17%.
