Market News

Crypto Licensing Unification: Hong Kong's Ambitious Roadmap

On June 26, Hong Kong's Financial Services and the Treasury Bureau (FSTB) unveiled its Policy Statement 2.0, outlining a comprehensive approach to regulate digital assets.

This proposal designates the Securities and Futures Commission as the main authority for licensing digital asset trading and custody services, with the Hong Kong Monetary Authority overseeing bank-related activities.

The new regulatory framework aims to reduce oversight gaps and enhance the overall management of digital asset functions.

One key aspect includes the rollout of tax incentives and policy support for tokenized products, such as the issuance of tokenized government bonds across various sectors like ETFs and renewable energy.

Stablecoin regulations are expected to be in place by August 2025, focusing on reserve requirements and risk management policies.

Furthermore, the FSTB's roadmap outlines a “LEAP” strategy, which stands for Legal reform, Expansion of tokenized products, Applied use cases, and Partnerships, to ensure thorough integration of digital assets into the economy.

Hong Kong is positioning itself to utilize public policy to foster the adoption and scaling of digital assets, creating attractive opportunities for businesses in the region.

Cross-sector collaboration among regulators, law enforcement, and tech providers also underscores the importance of security and interoperability in the ever-evolving crypto landscape.

With the emphasis on talent development and international engagement, the city is set to strengthen its role as a leading global hub for cryptocurrency innovation.

This initiative marks a significant step towards establishing a robust regulatory environment, which could enhance confidence and investment in the dynamic digital asset sector.