Hong Kong Expands Crypto Regulations to Boost Status as Global Digital Asset Hub

Hong Kong has released its second major policy statement on digital assets, reinforcing its commitment to becoming a global hub for the crypto industry. The government announced plans to implement a comprehensive regulatory framework focused on risk management and investor protection. Oversight will be handled by the Securities and Futures Commission, covering exchanges, custodians, stablecoins, and digital asset service providers. Public consultations on the new licensing regimes will begin soon.

Building on its 2022 digital asset roadmap, Hong Kong has taken active steps to develop its crypto ecosystem. In December 2024, it granted operational licenses to four crypto exchanges, and from August 1, 2025, stablecoin issuers will be subject to licensing requirements under new legislation.

In addition, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority are reviewing the legal structure around tokenized real-world assets (RWAs) and financial instruments. This includes tokenized bond issuance and ETF transactions. Financial Secretary Paul Chan emphasized the goal of promoting diverse and practical use cases for tokenization.

Tokenization of RWAs has surged 380% globally in the past three years, reaching $24 billion in mid-2025, according to data from RedStone, Gauntlet, and RWA.xyz. In response, Hong Kong will normalize tokenized government bond issuance and support the secondary trading of tokenized ETFs on licensed platforms. Clarification on stamp duty for tokenized ETFs will be part of the effort to improve liquidity and accessibility.

As jurisdictions like the U.K., U.S., South Korea, and the EU introduce digital asset regulations—including the EU’s MiCA rules—Hong Kong is accelerating its push to compete as a leading digital finance center in Asia.