Hong Kong announces the "Digital Asset Development Policy Declaration 2.0", with the LEAP framework to build a global Crypto Assets center!

After more than two years of exploration and groundwork, Hong Kong is making a full push towards its grand goal of becoming a "global digital asset center" with a more determined and systematic approach. In June 2025, the Hong Kong Special Administrative Region government officially released the "Hong Kong Digital Asset Development Policy Declaration 2.0." This programmatic document not only continues and deepens the first policy declaration from 2022 but also signifies that Hong Kong's digital asset strategy has officially moved from the "testbed" stage to a new journey of "institutionalization, scaling, and globalization." The core of the "Manifesto 2.0" is the proposal of a four-strategy framework called "LEAP", which aims to build a trustworthy and innovative digital asset ecosystem by optimizing legal regulations, expanding tokenized products, advancing application scenarios, and developing talent collaboration. This series of strategic moves not only provides a clear roadmap for global players to enter the Asian market but also ignites immense enthusiasm in the capital market, signaling the accelerated arrival of Hong Kong's Web3 era.

Before delving into the details of the policy, a noteworthy change is that the Hong Kong authorities have officially renamed the term "virtual assets" to "digital assets". This shift in terminology is by no means accidental, and it embodies profound strategic considerations. The term "virtual" often carries connotations of uncertainty, non-entity, or even illusory meanings in the Chinese context. In contrast, "digital" better reflects its intrinsic value as a new production factor in the data era, as well as its potential to stand alongside traditional financial assets. Some officials have stated that renaming it as "digital asset" sounds more positive and better explains that Hong Kong's future development will not only focus on cryptocurrencies but also encompass the entire digitalization wave of financial products, including the tokenization of real-world assets (RWA), stablecoins, and tokenized securities. This change in terminology clearly outlines Hong Kong's ambition—not only to become a trading hub for cryptocurrencies but also to become a global innovation center for digital finance. Returning to the core interpretation, the "LEAP" framework proposed in the "Declaration 2.0" is the action blueprint for the future development of digital assets in Hong Kong, covering four complementary strategic directions: Optimize legal and regulatory streamlining: This is the cornerstone of the entire framework. Hong Kong is committed to building a unified and comprehensive regulatory framework for digital asset service providers, which will cover digital asset trading platforms, stablecoin issuers, digital asset trading service providers, and custodians. The Securities and Futures Commission (SFC) will serve as the main licensing and regulatory body. Meanwhile, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) will lead a comprehensive review of existing legislation, aiming to remove legal barriers for the tokenization of real-world assets (RWA) and financial instruments, particularly in areas such as settlement, registration, and record-keeping. Expanding the suite of tokenised products: On a solid regulatory foundation, Hong Kong will vigorously promote product innovation. The declaration clearly states that the issuance of "tokenized government bonds" will be transitioned from an experimental nature to normalization, and incentive measures for RWA tokenization will be provided in areas such as taxation, for example, clarifying the stamp duty arrangements for tokenized ETFs to enhance market liquidity and accessibility. The government's vision goes beyond financial products; it will also actively promote the tokenization of a wider range of physical assets such as gold and other precious metals, non-ferrous metals, and even renewable energy (like solar panels), fully demonstrating the tremendous potential of blockchain technology in enhancing asset transparency and reducing transaction costs. Advancing use cases and cross-sectoral collaboration: The ultimate value of technology and products lies in their application. The "stablecoin issuer licensing mechanism" officially implemented on August 1 is seen as a key step in promoting substantive application scenarios. The government has even publicly stated that it welcomes market participants to suggest how the government can experiment with and use the licensed stablecoins. In addition, the Cyberport will also launch the "Blockchain and Digital Asset Pilot Funding Scheme" to provide financial support for influential landmark projects in the market, accelerating the landing of innovation. People and partnership development: Talent is the fundamental driving force behind industrial development. Hong Kong will work to collaborate with the industry and academia to promote joint research programs, cultivating a new generation of entrepreneurs, researchers, and technical experts, establishing a sustainable talent pool for the digital asset industry. At the same time, Hong Kong will strengthen cooperation with global regulatory agencies, positioning itself as a knowledge sharing and international cooperation center in the field of digital assets.

The Hong Kong government's clear and proactive policy signals have quickly triggered a chain reaction in the capital markets. Traditional financial institutions are no longer content to sit on the sidelines but have chosen to "run into the field" to seize advantageous positions in the new Web3 track. Chinese-funded brokerages are making inroads: represented by Guotai Junan International, several brokerages have been approved to upgrade their No. 1 license, enabling them to provide compliant virtual asset trading services for clients. This breakthrough means that investors will be able to trade assets such as Bitcoin, Ethereum, and stablecoins directly through traditional broker channels that are subject to strict regulation. Guotai Junan International's stock price surged nearly 300% after the news was announced, demonstrating the market's high recognition of such "compliance bridges." Guotai Junan Securities Launches Tokenized Securities: Chinese brokerage Guotai Junan Securities has partnered with HashKey to launch tokenized securities in Hong Kong, including currencies such as USD, HKD, and offshore RMB. The tokenized securities, named "GF Token," are interest-bearing and redeemable daily, available for purchase by high-net-worth individuals and institutional professional investors. This milestone marks an important step forward in the tokenization process of real-world assets (RWA) in Hong Kong and lays the foundation for broader on-chain cooperation in tokenized securities within the Hong Kong securities industry in the future. Investment banks make significant moves: Huaxing Capital Holdings Limited, known as the "King of Mergers and Acquisitions in China", has publicly announced the approval of a "cryptocurrency asset investment plan" totaling up to $100 million. The company explicitly stated in the announcement that this move aims to respond to the proactive policies of the Hong Kong government and will focus on the development of stablecoins, RWA, and the entire ecosystem of cryptocurrencies. Huaxing Capital's entry signifies the trust of traditional top investment banks in the prospects of Hong Kong's Web3. In summary, the Financial Secretary of Hong Kong, Paul Chan, emphasized while explaining the "Declaration 2.0" that by combining prudent regulation with encouragement of market innovation, Hong Kong aims to build a more vibrant digital asset ecosystem that integrates with the real economy and social life, thereby consolidating its leading position as an international financial center. From the tentative embrace of "Declaration 1.0" to the systematic layout of "Declaration 2.0", Hong Kong's digital asset policy has completed a transformation from point to surface. The proposal of the "LEAP" framework not only provides clear guidance for the market but also demonstrates Hong Kong's determination and ambition to the world. This city is not only content to serve as a "firewall" and "testing ground" between the mainland and the world, but aims to leverage its unique institutional advantages and profound financial heritage to truly become a global innovation center, trading center, and talent center for digital assets. The Web3 wave led by the Pearl of the Orient is poised to take off, and its future development is worthy of global attention. #Hong Kong cryptocurrency concept stocks