Hong Kong Advances Digital Asset Ecosystem with Policy 2.0

Hong Kong has unveiled its Policy Statement 2.0 on the Development of Digital Assets, marking a significant step in its strategy to foster innovation and regulation in the sector. The new "LEAP" framework aims to create a trusted digital asset ecosystem, focusing on legal streamlining, tokenized products, use cases, and partnership development.

A unified regulatory regime will cover crypto exchanges, stablecoin issuers, and custodians, with the Securities and Futures Commission overseeing licensing. The Financial Services and the Treasury Bureau, alongside the Hong Kong Monetary Authority, will review laws to facilitate tokenized financial instruments, including bonds, to bring real-world assets on-chain.

The initiative also seeks to mainstream tokenized government bonds, signaling Hong Kong's commitment to becoming a hub for digital asset innovation and adoption.