Dr. Xiao Feng Interprets Hong Kong's Digital Asset Policy 2.0: An Institutional Upgrade Centered on the LEAP Strategy, Compliance is the Ticket to Entry

To gain a deeper understanding of the far-reaching impact of this policy change on Hong Kong, PANews interviewed Dr. Xiao Feng, Chairman and CEO of @HashKeyGroup. In the interview, Dr. Xiao shared his unique insights on the "Policy Statement 2.0."

Q1: How do you understand the "Hong Kong Digital Asset Development Policy Statement 2.0"? What are the significant differences between it and the 2022 version?

Xiao Feng: "Policy Statement 2.0" is not a simple continuation, but an institutional upgrade. It systematically promotes compliance regulation, asset tokenization, scenario expansion, and talent development in four dimensions around the "LEAP" strategic framework. This marks Hong Kong's evolution from being not just a "testing ground" for digital assets, but also moving towards "institutionalization, scaling, and globalization."

The particularly key changes lie in three aspects:

1. Stablecoins will be included in regulation: It is clearly stated that a stablecoin licensing system will be officially implemented on August 1, 2025, making it one of the few jurisdictions in the world to truly give stablecoins a "landing permit";

2. RWA tokenization is regarded as a key industry: The government not only promotes the regular issuance of bonds, but also plans to include gold, green energy, electric vehicle assets, etc. in the scope of tokenization;

3. Tokenized ETFs and digital asset funds enjoy tax exemptions: If legislation is passed in the future, tokenized ETFs will enjoy the same stamp duty and profit tax exemptions as traditional ETFs, which is a rewrite of the rules of the financial market game.

These reforms demonstrate a signal: Hong Kong is not just supporting Web3, but is using the system to turn Web3 into a part of the financial infrastructure.

At the regulatory policy level, the update of Hong Kong's Web3 policy has also completed a "three-in-one" institutional closed loop:

1. Regulatory certainty: Hong Kong will become the world's first jurisdiction to clearly license digital asset custody services independently;

2. Asset transparency: Allowing real-world assets (metals, energy) to be tokenized equally with financial instruments (bonds, ETFs), breaking the boundary between the virtual and the real;

3. Tax competitiveness: Tokenized ETF tax exemption + digital asset fund profit tax exemption.

This marks Hong Kong's official promotion from a "regulatory testing ground" to a "global RWA (Real World Assets) issuance and circulation hub."

Q2: Why has stablecoin become a policy focus? How will HashKey participate in this trend?

Xiao Feng: Stablecoins are evolving from "tool-type currencies" to "infrastructure currencies." Recently, the U.S. Treasury Secretary mentioned when the Senate stablecoin bill was passed that by 2030, there will be $3.7 trillion to $3.9 trillion in stablecoins in circulation globally, which is an incremental market that exceeds the financial volume of most countries.

Hong Kong's institutional design is very clear, setting rules for stablecoin issuers such as statutory reserve management, redemption mechanisms, and risk prudential requirements. It allows stablecoins to no longer be a "club agreement" between technologists, but a currency that can be accepted by banks, cross-border settlement systems, and the public sector, with both statutory and technical attributes.

HashKey will participate in depth in three levels in the future:

• Support the listing of globally compliant stablecoins on the HashKey exchange to help cross-border e-commerce and global users improve payment efficiency;

• Pilot on-chain stablecoin settlement through a compliant platform to optimize OTC and inter-exchange clearing mechanisms;

• Participate in the design of stablecoin and RWA mapping combination products, such as anchoring bonds and money market funds through stablecoins to build on-chain interest rate products.

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