Hong Kong has released another policy statement on the development of digital assets.

Gate News bot reported that the Hong Kong Special Administrative Region government has released a new policy statement on the development of digital assets. According to Hong Kong media, the new policy statement regarding the development of digital assets aims to strengthen the Hong Kong government's desire to become a regional and global Crypto Assets center.

The second policy declaration is named "Hong Kong Digital Asset Development Policy Declaration 2.0", based on the initiatives outlined in the first declaration published in October 2022. Financial Secretary Paul Chan stated that "Policy Declaration 2.0" reflects the government's vision for the development of digital assets and showcases practical applications of tokenization, aiming to enrich application scenarios.

By integrating a comprehensive regulatory framework and encouraging high-level market innovation, Hong Kong is committed to creating a vibrant digital asset environment closely integrated with the real economy and social life, benefiting the economy and society. This move also aims to reinforce Hong Kong's position as a leading international financial center.

Chen Maobo stated: "Through blockchain technology, we can achieve more efficient and lower-cost financial transactions, thereby bringing more inclusive financial services. Policy Statement 2.0 outlines our vision for the development of digital assets (DA) and demonstrates the practical uses of tokenization through applications to promote the diversification of use cases."

The new digital asset development policy statement outlines the government's plan to simplify the existing encryption asset service provider legal and regulatory framework by establishing a comprehensive regulatory system for digital asset exchanges, stablecoin issuers, trading service providers, and custodians.

According to the proposed policy, the Hong Kong Securities and Futures Commission (SFC) will be the main regulatory authority for the upcoming licensing system for digital asset traders and custodians. On the other hand, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority will be responsible for conducting legal reviews to facilitate the tokenization of real-world assets.

Hong Kong aims to further promote the tokenization of various assets across different industries, including precious metals, non-ferrous metals, and renewable energy. The government is committed to enhancing use cases and cross-sector collaboration by facilitating cooperation among regulatory bodies, law enforcement agencies, and technology providers in the development of digital asset infrastructure. According to the statement, the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission will soon conduct public consultations on the licensing system for digital asset trading service providers and custodians.

Eugene Cheung, Chief Business Officer of OSL Group, stated regarding this progress: "The Hong Kong SAR government is committed to promoting the tokenization of real-world assets (RWA) through cross-departmental collaboration, which is an important step for Hong Kong towards becoming a global leader in digital asset innovation."

The new digital asset development policy statement builds on the 2022 policy. Hong Kong is actively promoting its supportive policies for Crypto Assets, but it also faces competition from other jurisdictions that are developing their own virtual asset regulatory frameworks. Hong Kong is also seeking to expand its Crypto Assets products, including potentially allowing professional investors to engage in Crypto Assets derivatives trading, and exploring the potential of virtual asset ETFs.