Hong Kong Unveils Expanded Digital Asset Policy

Hong Kong has released 'Policy Statement 2.0,' outlining the LEAP framework—Licensing, Education, Application, and Protection—to unify and expand regulation of digital assets and strengthen its global leadership. The Securities and Futures Commission will serve as the lead licensing authority for digital asset platforms, with new licensing rules for stablecoin issuers taking effect on August 1, 2025. Authorities plan to facilitate tokenization of real-world assets such as government bonds, commodities, and ETFs, with incentives like clarified tax treatment and streamlined stamp duty for secondary trading. The initiative also focuses on risk management, investor protection, and international collaboration, including benchmarking efforts against the US, EU, and South Korea. Support for talent development and funding of blockchain pilot projects is included. Public consultations on the proposed licensing structures and further international engagement are planned.