Hong Kong has released an updated policy statement to further its aim of becoming a global digital asset hub.

The “Policy Statement 2.0 on the Development of Digital Assets in Hong Kong,” outlines measures to promote stablecoin use, tokenization, and regulatory improvements.

The policy introduces the “Leap” framework, which seeks to streamline laws related to digital assets and expand their use cases.

It also aims to foster talent within the industry, continuing efforts initiated in the first policy statement from late 2022.

One major proposal offers tax breaks on profits from digital assets, treating them like traditional investments.

This comes as global digital asset regulation intensifies, including the US Genius Act and Hong Kong’s upcoming stablecoin law.

Authorities emphasize licensing for stablecoin issuers, viewing them as key tools for cross-border payments and Web3 ecosystem.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Global race for stablecoin regulation shows divergent approaches

Hong Kong’s stablecoin regulations, taking effect August 1, 2025, represent part of a global regulatory race that’s accelerating across major jurisdictions with different approaches.

While Hong Kong focuses on fiat-referenced tokens tied specifically to the Hong Kong dollar, the European Union leads with its comprehensive Markets in Crypto-assets Regulation (MiCA) covering multiple types of stablecoins 1.

The United States is taking a different path through the recently passed Genius Act, highlighting how jurisdictions are competing with tailored regulatory frameworks rather than adopting uniform global standards 1.

These regulatory developments come as stablecoins experience tremendous growth, with the total supply increasing approximately 28% year-over-year and reaching $247 billion in market capitalization, now representing over 1% of the US M2 money supply 2, 3.

The “same activity, same risk, same regulation” principle cited by Hong Kong regulators demonstrates the city’s attempt to balance innovation with consumer protection, mirroring approaches in other financial centers 4.

2️⃣ Stablecoins bridging traditional finance and crypto ecosystems