Hong Kong Releases Digital Asset Policy 2.0: Promoting Asset Tokenization and Clarifying ETF Stamp Duty Exemption

On June 26, the Hong Kong Financial Services and the Treasury Bureau released the "Hong Kong Digital Asset Development Policy Declaration 2.0", which pointed out that the Hong Kong government will intensify efforts to expand tokenization solutions and promote broader tokenization of assets and financial instruments, showcasing the diverse applications of this technology across different sectors, including precious metals (such as gold), non-ferrous metals, and renewable energy such as solar panels.

Currently, all ETFs listed on the Hong Kong Stock Exchange are exempt from stamp duty during transfers. To promote the development of the tokenization market, the Hong Kong government will clarify that the exemption from stamp duty also applies to tokenized ETFs, which essentially clarifies the stamp duty situation for tokenized ETFs after secondary market trading is allowed in the future. The "Policy Declaration 2.0" has also made it clear that market participants are welcome to explore the advantages of tokenizing ETFs, including introducing them for secondary market trading on licensed digital asset trading platforms or other platforms.