The Hong Kong authorities has launched a brand new coverage assertion geared toward advancing its crypto asset ecosystem, reinforcing its ambition to change into a key hub for crypto innovation and regulation.
Titled “Coverage Assertion 2.0,” the initiative builds on the area’s first digital asset coverage launched in October 2022 and descriptions an up to date framework for regulating and supporting the tokenization of real-world property (RWAs) and increasing crypto licensing measures.
Regulatory Readability and Broader Tokenization Initiatives
The up to date technique introduces the “LEAP” framework, which stands for “Licensing, Schooling, Utility, and Safety.” The federal government plans to streamline regulatory oversight for crypto service suppliers, together with exchanges, stablecoin issuers, and custodians.
On the similar time, the assertion units out objectives for scaling RWA tokenization via authorized readability, new infrastructure, and public-private collaboration. Hong Kong Monetary Secretary Paul Chan emphasised the significance of blockchain in enabling lower-cost and extra inclusive monetary companies.
Below the coverage, the Securities and Futures Fee (SFC) will function the lead authority on upcoming licensing regimes for digital asset sellers and custodians.
In parallel, the Monetary Companies and the Treasury Bureau (FSTB), in coordination with the Hong Kong Financial Authority (HKMA), will conduct authorized evaluations to ease the trail for RWA tokenization.
The federal government additionally intends to standardize the issuance of tokenized authorities bonds and develop new tax tips for tokenized exchange-traded funds (ETFs), aiming to assist each major issuance and secondary market buying and selling.
Past monetary devices, Hong Kong’s coverage appears to be like to incentivize tokenization throughout sectors, together with treasured metals, non-ferrous metals, and renewable power.
These steps are designed to boost market liquidity, enhance accessibility, and foster innovation in asset administration. Public consultations on the proposed licensing buildings are anticipated quickly, with the FSTB and SFC main efforts to incorporate trade enter into the event of those frameworks.
Cross-Sector Collaboration and Stablecoin Oversight
As a part of the broader plan to develop crypto asset infrastructure, the Hong Kong authorities is encouraging collaboration between regulators, legislation enforcement businesses, and know-how suppliers.
This consists of initiatives to spice up safety, interoperability, and use case growth throughout each the private and non-private sectors. The purpose is to create a extra robust and scalable basis for crypto asset adoption throughout industries.
Along with the brand new coverage, earlier developments have laid groundwork for Hong Kong’s strategy to crypto regulation. In Could, the Legislative Council handed laws to ascertain a licensing regime for stablecoin issuers, set to take impact on August 1.
Monetary Secretary Chan famous that this transfer will assist Hong Kong’s broader monetary technique, together with its ambitions to function an offshore yuan hub. Business contributors resembling Eugene Cheung of OSL Group have welcomed the modifications, describing them as aligned with world developments in tokenization and monetary digitization.
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