Hong Kong has unveiled an updated digital asset strategy focusing on stablecoin licensing and asset tokenization, highlighted by the introduction of the LEAP framework. This framework aims to promote legal clarity, ecosystem growth, practical applications, and talent development within the crypto space. Starting August 1, a licensing regime for stablecoin issuers will be established to enhance real-world use cases. The Securities and Futures Commission (SFC) will oversee licensing for digital asset providers, while a review by financial authorities will facilitate the tokenization of various assets, including government bonds and ETFs. The government is also encouraging tokenization across diverse sectors, such as precious metals and renewable energy. Financial Secretary Paul Chan emphasized that this new framework aims to integrate real economic activities with the digital asset ecosystem. Public consultations regarding the licensing regime are expected to launch soon, as Hong Kong continues to solidify its position as a leader in the digital finance sector.

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