Hong Kong's Crypto Revolution: New Rules to Reshape the Digital Asset Landscape

Hong Kong is poised to implement a significant regulatory overhaul for digital assets with the introduction of “Policy Statement 2.0,” scheduled to take effect on June 26, 2025. This policy reflects the region’s strategic ambition to establish itself as a preeminent global center for digital and virtual asset innovation. At the core of this initiative is a consolidated licensing regime, which will unify oversight of trading platforms, custodians, stablecoin issuers, and over-the-counter service providers. This approach is intended to streamline compliance processes, bolster investor safeguards, and uphold market integrity.

A particularly noteworthy aspect is the requirement, effective August 1, 2025, for stablecoin issuers to obtain licenses from the Hong Kong Monetary Authority (HKMA). This measure is expected to introduce regulatory clarity and attract participation from international digital asset stakeholders.

The framework further emphasizes investor protection and risk management by mandating the segregation of trading and custody services, imposing capital requirements, and enforcing robust cybersecurity and asset segregation standards. These provisions are designed to mitigate fraud and enhance the security of market participants.

Additionally, the Financial Services and the Treasury Bureau (FSTB) and HKMA intend to review and refine legal frameworks to facilitate the tokenization of real-world assets and financial instruments. Such measures are anticipated to increase market liquidity and broaden the range of digital asset applications. The policy also outlines initiatives involving tax incentives, talent development, and international cooperation to nurture a sustainable digital asset ecosystem. Notably, the HKMA will continue its sandbox experiments with the wholesale Central Bank Digital Currency (wCBDC) project, known as “Ensemble.”

Collectively, these strategic objectives seek to position Hong Kong as a credible, sustainable, and integrated digital asset hub. By aligning with international anti-money laundering standards and providing regulatory certainty, the framework aims to attract institutional and multinational entities. The anticipated results include improved market transparency, increased institutional adoption, and accelerated innovation within the digital asset sector—demonstrating Hong Kong’s commitment to balanced regulation that fosters the integration of digital assets into the broader economy.