Hong Kong's government has announced a new regulatory framework for digital assets, aiming to enhance risk management and investor protection as it seeks to establish itself as a global cryptocurrency hub. The Securities and Futures Commission will regulate exchanges, custodians, and stablecoins, while also reviewing the legal framework for tokenizing real-world assets. With significant growth in tokenization, the government plans to encourage secondary market trading of tokenized ETFs and the issuance of tokenized government bonds.

China's securities regulator has advised local brokerages to pause their real-world asset (RWA) tokenization business in Hong Kong, reflecting concerns over the rapid growth of digital assets. The move comes as Hong Kong seeks to establish itself as a digital assets hub despite China's cautious stance on cryptocurrency.