Hong Kong Puts Stablecoins and Tokenization at Core of New Crypto Policy
Hong Kong's digital asset strategy emphasizes stablecoin regulation and asset tokenization to establish itself as a global crypto and fintech hub. The new framework, "LEAP," focuses on legal clarity, ecosystem expansion, real-world applications, and talent development. A licensing regime for stablecoin issuers will begin on August 1, facilitating real-world use cases. The Securities and Futures Commission will oversee licensing for digital asset dealing and custody providers, while a legal review will support the tokenization of real-world assets. The government plans to regularize the issuance of tokenized government bonds and promote tokenized ETFs, clarifying their stamp duty treatment. Incentives for tokenization will extend to sectors like metals and renewable energy. A Cyberport funding program will support innovative blockchain projects. Public consultations on new licensing regimes will be launched soon. Additionally, Hong Kong is preparing to introduce digital asset derivatives trading for professional investors, following approvals for spot crypto ETFs and staking services. The Stablecoin Bill has been passed, enhancing the region's regulatory framework for digital assets.
