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

Hong Kong has unveiled a new policy statement enhancing its regulatory framework for digital assets, aiming to secure its status as a global crypto hub. The Securities and Futures Commission will oversee licensing for exchanges, custodians, and stablecoin issuers. Active measures include examining legal structures for tokenized assets and setting norms for government bond issuance. While global tokenization is surging, Hong Kong aims to improve trading conditions to strengthen its competitive edge in the digital finance landscape.

Hong Kong is taking significant strides in boosting its position as a global hub for digital assets with the release of a new major policy statement on crypto. This is the government’s second key policy move aimed at establishing a robust regulatory framework that focuses on managing risks and safeguarding investors’ interests. It’s all set to be overseen by the Securities and Futures Commission, which will be responsible for various areas like exchanges, custodians, stablecoins, and service providers for digital assets. The public can look forward to upcoming consultations about the new licensing regimes which are expected to kick off quite soon.

This recent announcement builds on the digital asset roadmap laid out in 2022. Last December, officials in Hong Kong granted operational licenses to four cryptocurrency exchanges, and starting from August 1, 2025, the spotlight will shift to stablecoin issuers who will then be subjected to new licensing requirements.

In another significant move, the Financial Services and the Treasury Bureau, alongside the Hong Kong Monetary Authority, is examining the current legal structures related to tokenized real-world assets (RWAs) and financial instruments. This exploration will encompass tokenized bond issuance as well as ETF transactions. Financial Secretary Paul Chan has been vocal about the need to enhance and diversify practical applications of tokenization.

In fact, there’s been quite an explosive growth in the tokenization of RWAs, which has shot up by 380% globally over the past three years, reaching an astounding $24 billion in mid-2025, according to data collated from RedStone, Gauntlet, and RWA.xyz. To address this, Hong Kong is looking to normalise the issuance of tokenized government bonds, and will also bolster support for secondary trading of tokenized ETFs on licensed trading platforms. Additionally, there’s the intention to provide clarity on stamp duties affecting tokenized ETFs, all part of a larger strategy to enhance liquidity and accessibility in the market.

While regions like the U.K., U.S., South Korea, and the EU are rolling out their own digital asset regulations—taking cues from the EU’s MiCA rules—Hong Kong is racing ahead to solidify its standing as a top digital finance centre in Asia.