Hong Kong Web3 Regulation Upgrade: Focusing on stablecoins and RWA, over 40 institutions approved for new business

The Hong Kong SAR government recently released the "Hong Kong Digital Asset Development Policy Declaration 2.0", which is a further deepening and implementation of the first policy declaration issued in October 2022. The new policy places greater emphasis on practical applications and ecological construction, reiterating Hong Kong's determination to become a global center for digital asset innovation.

"LEAP" Framework: Four Core Directions

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

1. Optimize Legal and Regulatory Framework: A comprehensive regulatory framework for digital asset service providers is being constructed, covering trading platforms, stablecoin issuers, trading service providers, and custodial service providers. The Securities Regulatory Commission will become the main regulatory authority.

2. Expanding the variety of tokenized products: This will promote the normalization of government bond tokenization and provide incentives for real-world asset tokenization. In the future, it may allow tokenized exchange-traded funds to be traded on licensed digital asset trading platforms in the secondary market.

3. Promote application scenarios and cross-border cooperation: The stablecoin issuer licensing mechanism will be implemented on August 1. The Digital Harbor launched the "Blockchain and Digital Asset Pilot Grant Scheme" to support innovative projects in multiple fields.

4. Talent and Partner Development: Committed to collaborating with industry and academia to promote talent development, positioning Hong Kong as a hub for digital asset knowledge sharing and international cooperation.

Systemic Upgrade: Stablecoins and RWA Become the Focus

The new policy is regarded by industry insiders as a systemic upgrade, mainly reflected in three aspects:

1. Stablecoins will be regulated: The stablecoin licensing system will be officially implemented on August 1, 2025.

2. RWA tokenization becomes a重点产业: 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 may enjoy tax benefits: If future legislation is passed, tokenized ETFs will have the same stamp duty exemption and capital gains tax exemption as traditional ETFs.

Industry experts believe that stablecoins are evolving from "tool-based currency" to "infrastructure currency". The regulatory framework in Hong Kong has set rules for stablecoin issuers regarding statutory reserve management, redemption mechanisms, and risk prudence requirements, making them acceptable to banks, cross-border settlement systems, and the public sector.

Market Reaction: Institutions Actively Positioning

Recently, news about the implementation of stablecoins and RWA projects in Hong Kong has been frequently reported. Several well-known companies and financial institutions have begun to make moves in these areas, including Ant Group, OSL Group, and Tianxing Bank under Xiaomi.

As of now, 11 virtual asset trading platforms have obtained official licenses in terms of regulatory compliance. In addition, the Hong Kong Securities and Futures Commission has disclosed that there are currently 40 institutions approved to provide virtual asset trading services through integrated accounts, including Guotai Junan International, Tianfeng International, Hafu Securities, and Futu Securities (Hong Kong), among others.

Overall, the release of the "Policy Declaration 2.0" marks an important progress for Hong Kong in the development 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, diverse, and sustainable digital asset ecosystem. RWA and stablecoin are expected to become key growth areas in the next stage.