The Hong Kong Special Administrative Region government has officially released the "Hong Kong Digital Asset Development Policy Declaration 2.0", marking a pivotal step in its ambition to become a global innovation hub in the digital asset space. This updated declaration builds upon the original 2022 policy and introduces a comprehensive "LEAP" framework to drive sustainable, regulated, and economically impactful growth in blockchain and digital finance.
A Strategic Vision for Digital Transformation
At the heart of the new policy is a clear vision: to create a trusted, innovative, and investor-protected digital asset ecosystem that delivers tangible value to real-world economies and financial markets. Unlike speculative approaches seen elsewhere, Hong Kong emphasizes responsible innovation, combining prudent regulation with market-driven development.
The LEAP framework outlines four core pillars:
- Legal and Regulatory Streamlining – Establishing clear, consistent rules for digital asset service providers, including licensing for exchanges and custodians.
- Expanding the Suite of Tokenised Products – Encouraging the tokenization of traditional financial assets such as bonds, funds, and real estate to improve liquidity and accessibility.
- Advancing Use Cases and Cross-Sector Collaboration – Promoting blockchain applications beyond finance into areas like supply chain, intellectual property, and green finance.
- People and Partnership Development – Investing in talent training and fostering public-private partnerships to strengthen industry capabilities.
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Government Leadership and Institutional Support
Hong Kong’s Financial Secretary, Paul Chan, emphasized that digital assets represent a critical frontier in fintech evolution. "Through blockchain technology, we can enable faster, lower-cost financial transactions and make financial services more inclusive," he said. "The Declaration 2.0 demonstrates our long-term commitment—not just to innovation, but to practical applications that benefit the real economy."
Similarly, Christopher Hui, Secretary for Financial Services and the Treasury, highlighted Hong Kong’s unique advantage as an international financial center with robust legal infrastructure. "This updated declaration provides a clear roadmap for businesses and investors," Hui noted. "It positions Hong Kong at the forefront of digital transformation, where innovation thrives under strong oversight."
Regulatory action is already underway. The Financial Services and the Treasury Bureau (FSTB), together with the Securities and Futures Commission (SFC), will soon launch a public consultation on licensing regimes for digital asset trading and custody service providers, reinforcing investor protection while opening doors for institutional participation.
Industry Response: From Vision to Execution
The market response has been immediate and enthusiastic. Following the announcement, shares of Victory Securities surged nearly 45%, reflecting strong investor confidence in Hong Kong’s digital asset trajectory. The rally follows similar gains by Guotai Junan International, which had previously jumped over 198% on news of its virtual asset license application.
Industry leaders view this as more than just regulatory progress—it's a systemic upgrade.
“The LEAP framework lays out a clear blueprint for Hong Kong to become a global digital asset hub,” said Allan Tsung, CEO of OSL Group, the first licensed digital asset financial services firm in Hong Kong. “We’ve already served more than half of Hong Kong’s licensed brokers and top-tier institutions, and we’re committed to supporting a healthy, compliant market.”
Dr. Feng Xiao, Chairman and CEO of HashKey Group, described the new policy as a shift from experimental pilot programs to institutionalized, scalable, and globally competitive infrastructure.
“This isn’t just an extension of the 2022 declaration—it’s a structural leap forward,” Dr. Xiao stated. “By aligning regulation, tokenization, use cases, and talent development, Hong Kong is no longer just a testing ground. It’s becoming a global nexus for digital economy innovation.”
Market Impact and Sector Performance
On June 26, despite a broad market pullback—Hang Seng Index down 0.61%, Hang Seng Tech Index off 0.26%—digital asset-related stocks stood out. OKX-linked firm OSL ChainUp (01499.HK) rose 20%, while tourism and materials sectors also saw gains. Hong Kong China Travel Service spiked over 85%, and Shandong Molong surged nearly 20% in afternoon trading.
Conversely, blue-chip tech names like Kuaishou (+3.26%) and Zhou Dafu (+3.72%) led gains among large caps, while Geely (-4.88%), China Shenhua (-4.25%), and New Oriental (-3.27%) faced selling pressure.
Sector-wise:
- Materials Index: +2.86%
- Consumer Staples: +0.23%
- Information Technology: +0.19%
Meanwhile, declining sectors included healthcare (-1.63%), energy (-1.41%), and discretionary consumption (-1.3%).
Concept indices reflected growing interest in digital transformation:
- Surveillance & Monitoring: +9.82%
- Local Brokerage Firms: +6.52%
- Online Travel: +6.34%
Driving Innovation Through Public-Private Collaboration
Supporting the policy rollout, Cyberport announced the launch of its "Blockchain and Digital Asset Pilot Grant Scheme" to fund startups and pilot projects in blockchain infrastructure, decentralized identity, and tokenized assets.
This initiative complements the government’s push to attract global talent and build technical capacity—key components of the "People and Partnership Development" pillar.
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Frequently Asked Questions (FAQ)
What is the Hong Kong Digital Asset Development Policy Declaration 2.0?
It’s an updated government strategy outlining Hong Kong’s roadmap to becoming a global leader in digital assets through regulated innovation, investor protection, and real-world applications.
What does the LEAP framework stand for?
LEAP stands for:
- Legal and Regulatory Streamlining
- Expanding Tokenised Products
- Advancing Use Cases & Cross-Sector Collaboration
- People & Partnership Development
How will this affect investors?
Investors can expect clearer regulations, safer access to digital asset platforms via licensed providers, and new investment opportunities through tokenized stocks, bonds, and funds.
Are virtual asset licenses now available in Hong Kong?
Yes—regulated firms can apply for licenses to operate virtual asset trading platforms under SFC oversight. A public consultation on custodial services is expected soon.
Which companies benefit most from this policy?
Licensed digital asset firms (e.g., OSL, HashKey), traditional financial institutions upgrading their licenses (e.g., Victory Securities), and fintech startups receiving grant support.
Is Hong Kong positioning itself against other crypto hubs like Singapore or Dubai?
Rather than direct competition, Hong Kong leverages its strengths as a global financial center with strong rule of law and deep ties to mainland China—offering a unique blend of regulatory clarity and market access.
Looking Ahead: Building a Sustainable Digital Future
With the release of Declaration 2.0, Hong Kong is sending a powerful signal: it’s not chasing short-term crypto trends but building a long-term, sustainable digital financial ecosystem.
By prioritizing regulation without stifling innovation, integrating digital assets into traditional finance, and investing in talent and infrastructure, Hong Kong aims to become more than just a crypto hub—it wants to be the world’s model for responsible digital finance leadership.
As global markets evolve, one thing is clear: Hong Kong is making its move—and doing so with purpose.
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