Hong Kong’s Digital Asset Development Policy Declaration 2.0
The Hong Kong government has unveiled an updated initiative to bolster its presence in the digital asset sphere, as outlined in the newly released Hong Kong Digital Asset Development Policy Declaration 2.0 by the Financial Services and the Treasury Bureau. This comprehensive declaration signals a strong commitment to expand tokenization services, aiming to cover a broader spectrum of asset classes and financial instruments.
Targeted Sectors for Tokenization
Among the targeted sectors for this technology are precious metals like gold, non-ferrous metals, and renewable energy resources, such as solar panels, suggesting a push for diverse market applications.
Stamp Duty Exemption for Tokenized ETFs
One significant aspect of the new policy is the government’s intention to extend the current stamp duty exemption—previously applied to all exchange-traded funds (ETFs) on the Hong Kong Stock Exchange—to include tokenized ETFs. This clarification is essential as it dots the i’s on how these financial products will be treated in the marketplace, particularly concerning future trading in secondary markets.
Invitation to Market Players
The declaration further invites market players to delve into the potential benefits provided by tokenized ETFs, indicating an openness to their introduction on licensed digital asset trading platforms or similar venues. As Hong Kong positions itself as a significant player in digital finance, these developments could pave the way for a more robust tokenized market.
