Hong Kong has unveiled a new strategy in the realm of digital assets, aimed at the regulation of stablecoins and asset tokenization, which should assist in the region's growth as a fintech center.
New Regulatory Framework LEAP
The statement issued on Thursday introduces a framework known as 'LEAP,' aimed at providing legal clarity, ecosystem expansion, real-world applications, and talent development. It will implement a licensing regime for stablecoin issuers starting from August 1, 2025, which is said to 'facilitate the development of real-world use cases.'
Regulation of Tokenized Bonds
The government also plans to 'regularise the issuance of tokenized government bonds' and promote tokenized ETFs by clarifying their tax treatment. The statement indicated that the government welcomes the introduction of secondary market trading of these tokenized ETFs on licensed digital asset trading platforms.
Preparation for Crypto Derivatives Trading
Earlier this month, Hong Kong's financial authorities reported their preparations to introduce trading of digital asset derivatives for professional investors. This initiative follows recent approvals for spot crypto ETFs and futures products, strengthening the city's reputation as a leading digital finance hub.
Hong Kong's new strategy in the field of digital assets represents a significant step towards creating a regulated ecosystem that may foster innovation and growth in the region's financial sector.
