Hong Kong's New Web3 Policy: Stablecoins and RWAs Take Center Stage, Over 40 Institutions Rush to Position Themselves

The Hong Kong SAR Government recently released the "Hong Kong Digital Asset Development Policy Declaration 2.0", which further refines deployment and proposes specific implementation measures based on the first policy declaration issued in October 2022. The new policy places greater emphasis on practical applications and ecosystem development, once again demonstrating Hong Kong's determination to build a global digital asset innovation center.

The "LEAP" framework focuses on four key directions

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

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 custody service providers. The Securities Regulatory Commission will become the main regulatory body responsible for the future licensing mechanism.

2. Expand the variety of tokenized products: Regularize the issuance of tokenized government bonds to provide incentives for the tokenization of real-world assets. The government supports related tokenized exchange-traded funds to be traded on licensed platforms in the secondary market and promotes broader tokenization of assets and financial instruments.

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 substantial application scenarios. The government is committed to strengthening cooperation 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 cooperation.

Institutional Upgrade: Stablecoins and RWAs Become the Focus

The new policy represents a systematic upgrade, mainly reflected in three aspects:

1. Stablecoins are included in regulation: The stablecoin licensing system will be officially implemented on August 1, 2025, providing a "landing pass" for stablecoins.

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 exemptions: After future legislation is passed, tokenized ETFs will enjoy the same stamp duty exemptions and capital gains tax exemptions as traditional ETFs.

Industry experts believe that stablecoins are evolving from "tool-based currencies" to "infrastructure currencies." The regulatory framework in Hong Kong has clarified rules regarding legal reserve management, redemption mechanisms, and risk prudential requirements, making stablecoins a currency that possesses both legal attributes and technical attributes, acceptable by banks, cross-border settlement systems, and the public sector.

New Phase of Regulatory Compliance: Over 40 Institutions Upgrade Licenses

Currently, the regulation of digital asset business in Hong Kong is a collaborative effort between the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA). The SFC regulates virtual asset business activities, while the HKMA oversees areas related to currency payments. The SFC's approach to regulating virtual assets follows the principle of "same business, same risks, same regulation."

As of now, 11 institutions have obtained formal licenses for virtual asset trading platforms. According to the Hong Kong Securities and Futures Commission, there are currently 40 institutions approved to provide virtual asset trading services through comprehensive accounts, including Guotai Junan International, Tianfeng International, Hafu Securities, Futu Securities (Hong Kong), and others. Several Chinese-funded securities firms are also actively applying to upgrade their licenses related to virtual assets.

Overall, the launch of the "Policy Declaration 2.0" marks an important progress for Hong Kong in the development path of digital assets. With the regulatory framework becoming increasingly clear, tokenized products gradually taking shape, and institutions actively entering the market, Hong Kong is accelerating the construction of a robust, diversified, and sustainable digital asset ecosystem. RWA and stablecoin are expected to become key growth areas in the next phase.