Introduction
Hong Kong has unveiled its ambitious plan to become a global leader in digital assets through the "Hong Kong Digital Asset Development Policy Declaration 2.0" (referred to as Declaration 2.0). This strategic upgrade introduces the "LEAP" framework, focusing on four key dimensions:
- Legal and Regulatory Enhancements
- Diversification of Tokenized Products
- Cross-Industry Collaboration
- Talent and Partnership Development
This initiative aims to create a trusted, sustainable, and economy-integrated digital asset ecosystem.
Key Developments in Hong Kong’s Digital Asset Market
Virtual Asset Trading Services for Brokerages
- First-Mover Advantage:国泰君安国际 (Guotai Junan International) became the first Hong Kong-based Chinese brokerage to offer full virtual asset trading services.
- Market Response: Its stock surged from HKD 1.24 to HKD 7.02 within two trading days before settling at HKD 3.54.
- Business Model: Brokerages act as distributors, providing access to regulated exchanges for BTC, ETH, and stablecoins—excluding high-risk assets.
👉 Explore the future of digital asset trading
Regulatory Milestones
- Stablecoin Regulation: The "Stablecoin Ordinance" takes effect August 1, with the HKMA accepting license applications.
- Tax Exemptions: Tokenized ETFs and digital asset funds will enjoy stamp duty waivers, boosting liquidity.
The LEAP Framework: A Strategic Breakdown
| Pillar | Key Focus Areas | Expected Outcomes |
|----------------------|------------------------------------------|----------------------------------------|
| Legal Optimization | Stablecoin licensing, RWA tokenization | Enhanced investor protection |
| Product Expansion | Tokenized ETFs, commodities, green bonds| Broader asset diversification |
| Application Growth| Cross-border partnerships, DeFi integration | Real-world adoption of blockchain |
| Talent Development| Web3 education, fintech workforce | Sustainable ecosystem growth |
Stablecoins: The Gateway to Mainstream Adoption
Hong Kong’s approach to stablecoins mirrors global trends:
- USDC’s Success: Backed by Coinbase, it highlights the importance of distribution channels.
- Local Opportunities: Licensed brokers and exchanges will facilitate HKD-pegged stablecoins, bridging traditional and digital finance.
"Stablecoins are the infrastructure for the internet’s monetary layer." — Cobo Research
Tokenization of Real-World Assets (RWA)
Declaration 2.0 prioritizes RWA tokenization, enabling:
- Fractional Ownership: Green energy credits, gold, and logistics contracts.
- Efficiency Gains: Instant settlement, reduced intermediaries.
- Global Accessibility: Investors worldwide can trade tokenized assets 24/7.
👉 Discover how RWA is reshaping finance
FAQs
Q: How does Hong Kong’s regulatory approach differ from other markets?
A: Hong Kong emphasizes "same risk, same rules", requiring virtual asset services to comply with existing financial regulations while adding blockchain-specific safeguards.
Q: What are the risks for investors using licensed brokerages?
A: While safer than unregulated platforms, limitations include lower liquidity and fewer tradable assets compared to global exchanges like Binance.
Q: Why is RWA tokenization significant?
A: It unlocks trillions in illiquid assets (e.g., real estate, commodities) by making them tradable on blockchain networks.
Conclusion
Hong Kong’s Declaration 2.0 signals a shift from experimentation to institutional adoption, positioning the city as a gateway for Web3 innovation. By combining robust regulation with market-friendly policies, it aims to attract global capital and talent—ushering in the era of "digital twin assets."