Hong Kong releases Policy Declaration 2.0 to build a global digital asset innovation center.

On June 26, news emerged that the Hong Kong SAR government released the "Hong Kong Digital Asset Development Policy Declaration 2.0" (referred to as "Policy Declaration 2.0"), reaffirming the government's commitment to making Hong Kong a global innovation hub in the digital asset sector.
The "Policy Declaration 2.0" proposes the "LEAP" framework, which includes optimizing legal and regulatory streamlining and expanding the types of tokenized products.
The content of "Optimizing Legal and Regulatory" indicates that the Hong Kong government is constructing a unified and comprehensive regulatory framework for digital asset service providers, covering digital asset trading platforms, stablecoin issuers, digital asset trading service providers, and digital asset custody service providers.
The "Policy Declaration 2.0" clarifies that the Hong Kong Securities and Futures Commission is the main regulatory authority for digital asset trading service providers, responsible for licensing and registration matters, setting standards, optimizing regulatory processes, and reducing potential regulatory arbitrage under different digital asset regulatory frameworks; the Hong Kong Monetary Authority will act as the frontline regulatory authority for banks, overseeing their digital asset trading activities.
Support stablecoins and other tokenized projects, including exploring the use of stablecoins as a payment tool.
The "Policy Declaration 2.0" points out that stablecoins provide a cost-effective alternative outside of traditional systems, with the potential to revolutionize payment, supply chain management, and capital market activities. The Hong Kong government will implement a regulatory framework for stablecoin issuers starting from August 1, 2025, establishing relevant requirements for reserve asset management, stabilization mechanisms, redemption processes, and prudent risk management.
Many enterprises involved in cross-border trade and settlement have expressed strong interest in using stablecoins to reduce costs and expedite transaction processes. To fully leverage the potential of stablecoins, the government and regulatory agencies will provide a favorable market environment and necessary regulatory guidance to promote research and implementation plans by licensed stablecoin issuers in Hong Kong, addressing substantial pain points in economic activities. The Hong Kong government welcomes market participants to suggest how to experiment with and utilize licensed stablecoins, such as to enhance the efficiency of government payments.
The Government of the Hong Kong Special Administrative Region is firmly committed to building Hong Kong into a global leading digital asset center #PI# pijs.