Hong Kong has unveiled its new digital asset policy with a focus on stablecoin regulation and the tokenization of real-world assets. The new framework, called 'LEAP', was announced on Thursday.
Introduction of New Legislation
The policy includes the introduction of a licensing regime for stablecoins set to start on August 1. Licensing will be overseen by the Securities and Futures Commission (SFC), while the Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) will coordinate legal reviews to enable large-scale tokenization efforts.
Plans for Asset Tokenization
The government also revealed plans to institutionalize tokenized government bond issuances and encourage the development of tokenized ETFs. To ease barriers, authorities plan to clarify stamp duty rules on such products and will welcome secondary market trading on licensed platforms.
Innovation Support Initiatives
Hong Kong will also launch a new Cyberport funding initiative that supports high-potential blockchain and digital asset startups. Public consultations are expected soon to gather feedback on the new licensing frameworks.
The LEAP policy aims to integrate digital assets into real economic activity and social utility, creating a conducive ecosystem for the emerging sector.
