Hong Kong's Web3 ecosystem welcomes policy upgrades, with stablecoins and RWA becoming the focus

On June 26, the Hong Kong SAR Government released the "Hong Kong Digital Asset Development Policy Declaration 2.0", which is a further deepening and implementation of the first policy declaration issued in October 2022. The new policy places greater emphasis on practical applications and ecological construction, reaffirming the determination to make Hong Kong a global innovation center for digital assets.

"LEAP" Framework: Four Key Directions

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

1. Optimize laws and regulations: Build a unified and comprehensive regulatory framework for digital asset service providers, covering trading platforms, stablecoin issuers, trading service providers, and custodial service providers. The Securities Regulatory Commission will become the main regulatory body, responsible for the licensing mechanism in the future.

2. Expand the variety of tokenized products: Normalize the issuance of tokenized government bonds and provide incentives for the tokenization of real-world assets, including clarifying the stamp duty arrangements for tokenized exchange-traded funds. The government supports these funds to conduct secondary market trading in the future through licensed digital asset trading platforms.

3. Promote application scenarios and cross-sector cooperation: The stablecoin issuer licensing mechanism will be implemented on August 1, which will help advance the development of real application scenarios. The government will also enhance collaboration among regulatory agencies, law enforcement agencies, and technology providers to develop digital asset infrastructure.

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

Institutional Upgrade: The Role Shift of Stablecoins

Industry experts point out that the "Policy Declaration 2.0" represents a systemic upgrade, with key changes including:

1. Stablecoins will be regulated: The stablecoin licensing system will officially be implemented on August 1, 2025.
2. RWA tokenization becomes 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 benefits: In the future, they may enjoy the same stamp duty and capital gains tax exemptions as traditional ETFs.

Experts believe that stablecoins are evolving from "tool currency" to "infrastructure currency". The regulatory design in Hong Kong has clarified the rules regarding the statutory reserve management, redemption mechanisms, and risk prudence requirements for stablecoin issuers, giving stablecoins both statutory and technical attributes.

Institutions Respond Actively

Recently, multiple institutions have begun to lay out their digital asset business in Hong Kong. Some listed companies are collaborating with tech giants to promote the implementation of RWA projects, and several financial institutions are applying for or have obtained relevant licenses.

As of now, 11 virtual asset trading platforms have obtained official licenses, and over 40 institutions have been approved to provide virtual asset trading services through comprehensive accounts. Several Chinese securities firms are also actively applying to upgrade their licenses related to virtual asset trading.

Outlook

The launch of the "Policy Declaration 2.0" marks an important progress for Hong Kong in the development of digital assets. With an increasingly clear regulatory framework, the gradual implementation of tokenized products, and active participation from institutions, 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.