Hong Kong Pushes RWA Tokenization and Licensing

The Hong Kong government has released a new policy statement aimed at strengthening its position as a global cryptocurrency hub. This new policy, dubbed Policy Statement 2.0, builds on a previous framework from 2022, aiming to advance the digital asset industry through four key areas. According to Financial Secretary Paul Chan, this initiative will use blockchain technology to make financial transactions more efficient and affordable, thereby expanding inclusive financial services. The policy introduces a comprehensive regulatory framework for digital asset exchanges, stablecoin issuers, and service providers. The Securities and Futures Commission (SFC) will oversee licensing, while the Financial Services and the Treasury Bureau (FSTB) will work on legal frameworks to facilitate real-world asset (RWA) tokenization. There will also be efforts to expand the range of tokenized products and encourage the tokenization of assets in various sectors such as precious metals and renewable energy. The government plans to conduct public consultations on these initiatives soon. Eugene Cheung of OSL Group sees this as a significant step in establishing Hong Kong as a leader in digital asset innovation. Recent tax concessions also show the government's proactive market responses. Noteworthy is the new legislation for a stablecoin issuer licensing regime set to take effect on August 1. Overall, these efforts are part of Hong Kong’s ambition to solidify its status as a 'global offshore yuan hub.'