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The Star
17 hours ago
- Business
- The Star
Hong Kong sharpens crypto hub focus amid rising global competition
Hong Kong is intensifying its bid to become a global digital asset (DA) hub with the release of an updated policy statement focused on accelerating stablecoin use and tokenisation efforts, amid renewed momentum in the US this year. 'The government's highly anticipated Policy Statement 2.0, aimed at establishing Hong Kong as a global digital assets hub, comes at a time when Trump 2.0 is trying to make America the 'crypto capital of the planet',' said Andrew Fei, a partner at King & Wood Mallesons in Hong Kong. The city on Thursday released its 'Policy Statement 2.0 on the Development of Digital Assets in Hong Kong', an update to the first blueprint issued in late 2022, which first clarified the government's intent to court cryptocurrency business. Hong Kong is committed to bringing itself 'to new heights of global digital asset leadership' in response to the 'evolving global DA landscape', the Financial Services and the Treasury Bureau (FSTB) said in the policy statement. The document comes as the US has rapidly become a more favourable environment for crypto companies this year, under the friendlier policies of the second administration of President Donald Trump. Cryptocurrency values have surged since his election in November, which has also energised business activity in the sector. Last week, the US Senate passed a bill regulating the use of stablecoins, called the Genius Act, after Hong Kong passed its own law on the assets in May. The Hong Kong ordinance will take effect on August 1. It shows that the 'global race for digital assets innovation is well under way', Fei said. The policy statement introduced what the FSTB called the 'Leap' framework, aiming to streamline the city's legal and regulatory framework for digital assets, expand digital asset product offerings, advance use cases and foster industry talent. These measures signify that Hong Kong is now 'not merely a testing ground for digital assets', but is transitioning towards increasing institutionalisation, scaling and globalisation, according to Xiao Feng, chairman and CEO of HashKey Group, a licensed crypto exchange operator. The city's latest policy statement placed a heavy focus on the tokenisation of real-world assets (RWAs), the process of putting representations of traditional assets on a blockchain. The city 'strives to build a more flourishing DA ecosystem' that will 'bring benefits to both the economy and society', Financial Secretary Paul Chan Mo-po said in a statement on Tuesday. One of the biggest proposals in the new document is for legislators to make tax concessions on profits from digital assets, bringing them into parity with traditional assets such as stocks and bonds. 'RWA tokenisation takes centre stage in the second digital assets policy statement, which makes sense since many predict that tokenisation will grow into a multi-trillion dollar market before the decade's end,' Fei said. Meanwhile, the city is charging ahead with stablecoin development, which industry players are exploring as a cross-border payment tool. Hong Kong's new digital asset blueprint will 'strengthen market integrity, enable diverse activities and high-value transactions', said Tian Gan, CEO of China Asset Management Hong Kong. With the new regulation, which requires licences for issuers, stablecoins will help the city's Web3 ecosystem 'reach a critical breakthrough moment', Gan said. - SOUTH CHINA MORNING POST
Crypto Insight
2 days ago
- Business
- Crypto Insight
Hong Kong reveals new stablecoin rules and tokenized bond plans
Hong Kong's latest digital asset blueprint places stablecoin regulation and asset tokenization at the heart of its strategy to become a global crypto and fintech hub. The policy statement, issued on Thursday, introduces a framework known as 'LEAP,' targeting legal clarity, ecosystem expansion, real-world applications and talent development. It builds on the foundation laid by the government's first policy statement in October 2022. As part of the new framework, the government will implement a licensing regime for stablecoin issuers starting Aug. 1, which 'will facilitate the development of real-world use cases.' The Securities and Futures Commission (SFC) will oversee licensing for digital asset (DA) dealing and custody providers, while the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority will lead a legal review to support the tokenization of real-world assets (RWAs). Hong Kong to regulate tokenized bonds The government also plans to 'regularise the issuance of tokenized Government bonds' and promote tokenized ETFs by clarifying their stamp duty treatment. 'With that, the Government welcomes the introduction of secondary market trading of these tokenized ETFs on licensed DA trading platforms or through other channels,' the policy statement said. Beyond bonds and funds, the government said it aims to incentivize tokenization across broader sectors, including metals and renewable energy assets, demonstrating 'the versatility of this technology across sectors such as precious metals (e.g., gold)… and solar panels.' The policy also includes new measures to boost innovation, such as a Cyberport funding program aimed at supporting standout blockchain and digital asset projects. In a statement, Financial Secretary Paul Chan said the new framework 'showcases the practical use of tokenization' and aims to 'build a more flourishing DA ecosystem which will integrate the real economy with social life.' The government said it will soon launch public consultations on new licensing regimes. Hong Kong eyes crypto derivatives Earlier this month, Hong Kong's financial authorities said they were preparing to introduce digital asset derivatives trading for professional investors. The initiative follows recent approvals for spot crypto ETFs, futures products and staking services, including a green light for HashKey to offer staking in April, as the city positions itself as a leading digital finance hub. In May, the city's Legislative Council passed the Stablecoin Bill, paving the way for a regulated framework that could position the region as a global leader in digital assets and Web3 development. Source:
Yahoo
2 days ago
- Business
- Yahoo
Hong Kong Sets Out Plan to Regulate Crypto, Encourage Tokenization
Hong Kong's government released its second major policy statement on digital assets, underlining its pledge to set the region up as a global hub for the industry and saying it plans to establish a regulatory regime that puts risk management and investor protection center stage. The framework will be overseen by the Securities and Futures Commission and apply to custodians, digital asset service providers, exchanges and stablecoins, the government said Thursday. Public consultations on the licensing regimes will start shortly, it said. Hong Kong has been making moves in recent years to strengthen its position in the industry, and the statement builds on an earlier pronouncement from 2022, when it said it was "ready to engage" with participants. In December, it granted licenses to four crypto exchanges, and last month passed a law allowing it to license stablecoin issuers from Aug. 1. The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority will also review the legal regime on the tokenization of real-world assets (RWAs) and financial instruments, the government said. The review will look at tokenized bond issuances and transactions. The government is particularly looking at the practical use of tokenization plus how to diversify use cases, Financial Secretary Paul Chan said in the statement. Worldwide, RWA tokenization has grown by 380% in just three years and reached $24 billion this month, according to a first-half 2025 report from RedStone, Gauntlet and "The Government will regularise the issuance of tokenised Government bonds and incentivise the tokenisation of RWAs to enhance liquidity and accessibility through, among other initiatives, clarifying the stamp duty treatment for tokenised exchange traded funds (ETFs)," the government said. It also welcomes secondary market trading of these tokenized ETFs on licensed trading platforms. Nations across the globe like the U.K., U.S., South Korea and Pakistan are establishing their regimes for crypto companies as interest in the sector continues to grow. The European Union's rules for the industry, the Markets in Crypto Assets (MiCA) legislation, were published in 2023 and took effect last in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
