Hong Kong Launches Major Digital Assets Push as Global Crypto Competition Heats Up

Hong Kong has unveiled an ambitious Policy Statement 2.0 on digital assets development, doubling down on its commitment to establish itself as a premier global cryptocurrency hub as competition intensifies worldwide.

The comprehensive policy framework, released by the Financial Services and the Treasury Bureau on June 26, outlines a strategic "LEAP" approach designed to create what officials describe as "a trusted, sustainable, and deeply integrated DA ecosystem embedded within the real economy."

The territory is moving beyond its foundational 2022 policy statement with more aggressive measures to enhance trading liquidity, diversify digital asset products, and attract global service providers. "The Government and our regulators also welcome quality DA service providers from around the world to participate in our DA market, which helps promote market liquidity and healthy competition," the statement declared.

Central to the new policy is a streamlined regulatory approach that designates the Securities and Futures Commission (SFC) as the leading authority for licensing digital asset dealing and custodian service providers, while the Hong Kong Monetary Authority (HKMA) will oversee bank activities in the space.

This unified framework represents a significant shift toward regulatory clarity, with the government noting it will "enhance market integrity, facilitate a wide range of activities and large-volume transactions, and provide clarity for market participants."

Tokenization Push

Hong Kong is making tokenization a cornerstone of its digital assets strategy, announcing plans to regularize the issuance of tokenized government bonds following successful pilot programs totaling around HK$6.8 billion in green bonds.

The government will also expand tokenization efforts across sectors, including precious metals, renewable energy, and electric vehicle charging stations. Officials confirmed that existing stamp duty waivers for exchange-traded funds will apply to tokenized ETFs, encouraging further innovation in the space.

Stablecoin Integration

With new stablecoin regulations taking effect August 1, 2025, Hong Kong is positioning itself to capture growing corporate interest in digital payment solutions. The policy emphasizes stablecoins' potential to "transform payments, supply chain management, and capital market activities by offering a cost-effective and efficient alternative to traditional systems."

The government has even invited market participants to propose how licensed stablecoins could enhance government payment efficiency, signaling its willingness to lead by example.

Global Competition Response

The policy statement reflects Hong Kong's recognition of intensifying global competition in the digital assets space. The territory's approach emphasizes being "technology-agnostic" to ensure adaptability while embedding digital assets into traditional financial systems for sustainable growth.

Hong Kong Exchanges and Clearing has already developed the first digital asset index series in the territory, providing Bitcoin and Ether benchmarks for the Asian time zone as part of efforts to establish regional leadership.

Talent and Infrastructure Development

The policy includes significant investments in talent development through partnerships with universities and industry players, while Cyberport will launch a new funding scheme specifically for blockchain and digital asset applications.

The government envisions Hong Kong as "a centre of excellence to share knowledge and foster cooperation with other jurisdictions," positioning the territory not just as a hub but as a standard-setter for global digital asset development.

The comprehensive policy represents Hong Kong's most ambitious digital assets initiative to date, as it seeks to maintain its competitive edge in an increasingly crowded global marketplace for cryptocurrency services and innovation.