New Digital Asset Regulations in Hong Kong: Stablecoins and RWAs Take Center Stage, Over 40 Institutions Get on Board

On June 26, the Hong Kong SAR government released the "Hong Kong Digital Asset Development Policy Declaration 2.0", which presents more detailed deployment and implementation measures based on the first policy declaration issued in October 2022. The new policy places greater emphasis on practical applications and ecosystem construction, reiterating Hong Kong's commitment to becoming a global center for digital asset innovation.

"LEAP" Framework: Four Key Directions

The new policy proposes the "LEAP" framework, focusing on the following four aspects:

1. Optimize laws and regulations: Establish a unified and comprehensive regulatory framework for digital asset service providers, covering trading platforms, stablecoin issuers, trading service providers, and custody service providers. The Securities Regulatory Commission will become the main regulatory body.

2. Expand the variety of tokenized products: Normalize the issuance of tokenized government bonds to provide incentives for the tokenization of real-world assets. Government-supported tokenized exchange-traded funds will trade in the secondary market and promote broader tokenization of assets and financial instruments.

3. Promote application scenarios and cross-border cooperation: The stablecoin issuer licensing mechanism will be implemented on August 1. The government is committed to strengthening the collaboration between regulatory agencies, law enforcement agencies, and technology providers to develop digital asset infrastructure.

4. Talent and Partner Development: The government cooperates with the industry and academia to promote talent development, positioning Hong Kong as a center for digital asset knowledge sharing and international cooperation.

Cyberport has launched the "Blockchain and Digital Asset Pilot Funding Scheme", covering multiple areas such as real-world asset tokenization, stablecoins, and payment solutions, with each eligible project receiving up to HKD 500,000 in funding.

Institutional Upgrade: Stablecoins and RWAs Become the Focus

Industry experts believe that the "Policy Declaration 2.0" is an institutional upgrade, mainly reflected in three aspects:

1. Stablecoin regulation: The stablecoin licensing system will be officially implemented on August 1, 2025.
2. RWA tokenization is seen as a key industry: the government promotes the normalization of bond issuance and plans to include assets such as gold, green energy, and electric vehicles in the scope of tokenization.
3. Tokenized ETFs and digital asset funds enjoy tax exemptions: Tokenized ETFs may enjoy the same stamp duty exemption and capital gains tax exemption as traditional ETFs.

Stablecoins are evolving from "tool-based currency" to "infrastructure currency". The institutional design in Hong Kong has established rules for stablecoin issuers regarding statutory reserve management, redemption mechanisms, and risk prudential requirements, enabling stablecoins to possess statutory and technical attributes.

Institutions Actively Get on Board: Over 40 Approved to Provide Virtual Asset Trading Services

As of now, 11 institutions have obtained official virtual asset trading platform licenses. In addition, more than 40 institutions have been approved to provide virtual asset trading services through comprehensive accounts, including Guotai Junan International, Tianfeng International, Hafut Securities, and Futu Securities (Hong Kong), among others. Several Chinese-funded brokerages are also actively applying for upgrades to virtual asset-related trading licenses.

Currently, brokerage firms mainly conduct "distribution" type trading services by establishing comprehensive accounts within licensed exchanges, providing clients with trading channels for mainstream compliant coins. A certain trading platform has disclosed that its comprehensive account service has provided services to over 30 licensed institutions in Hong Kong, with a cumulative trading volume exceeding 30 billion HKD in the past six months.

Overall, the launch of the "Policy Declaration 2.0" marks an important progress in the development of digital assets in Hong Kong. With the regulatory framework becoming increasingly clear, tokenized products gradually being implemented, and institutions actively getting on board, Hong Kong is accelerating the construction of a robust, diverse, and sustainable digital asset ecosystem. RWA and stablecoin are expected to become key growth areas in the next stage.