Hong Kong Outlines LEAP Digital Asset Framework and Eyes 2026 Regulation Bill

Hong Kong officials said cross-border interest has risen as the city advances proposals for digital asset trading and custody licensing, while local firms expand tokenized products into Middle East markets.

Summary

Hong Kong officials said inquiries about moving funds to Hong Kong or opening accounts in the city have increased, adding to momentum around its Digital Asset Development Policy Statement 2.0 and planned 2026 bill for digital asset trading and custody regulation. New developments highlighted include a licensed Hong Kong virtual insurer expanding into Saudi Arabia and the UAE, and tokenized funds from Hong Kong reaching wealth platforms in the Middle East. The government is also drafting legislative proposals for digital asset trading and custody licensing, reinforcing its effort to build a regulated digital asset ecosystem and promote tokenization.

Terms & Concepts
  • Tokenized funds: Investment funds represented through blockchain-based tokens, which can streamline distribution, ownership tracking, and settlement.
  • Custody licensing: A regulatory framework requiring firms that safeguard clients’ digital assets to obtain authorization and meet operational standards.
  • Digital asset trading: The buying and selling of cryptocurrencies or tokenized assets through platforms or other regulated market infrastructure.