Hong Kong issues policy statement to reinforce role as global digital asset hub

HONG KONG -- The Hong Kong Special Administrative Region (HKSAR) government on Thursday issued the Policy Statement 2.0 on the Development of Digital Assets in Hong Kong, reinforcing its commitment to establish Hong Kong as a global hub for innovation in the digital asset field.

The document set out a vision for a trusted and innovative ecosystem that prioritizes risk management and investor protection, while delivering concrete benefits to the real economy and financial markets. It introduced the "LEAP" framework focusing on four main areas, which included legal and regulatory streamlining, expanding the suite of tokenized products, advancing use cases and cross-sectoral collaboration, as well as people and partnership development.

Paul Chan, financial secretary of the HKSAR government, said that digital assets hold great development potential with significance to fintech. The document showcased the practical use of tokenization through application, with a view to boosting the diversification of use cases.

Hong Kong will strive to build a more flourishing digital asset ecosystem which will integrate the real economy with social life through a prudent regulatory regime and encouragement to market innovation, thus bringing benefits to both the economy and society as well as consolidating Hong Kong's leading position as an international financial center, Chan added.

Christopher Hui, secretary for Financial Services and the Treasury of the HKSAR government, said that Hong Kong is uniquely positioned to bridge traditional finance with the digital asset era. The document will keep Hong Kong at the forefront of digital transformation, offering a clear roadmap for businesses and investors to thrive in a secure and vibrant market.