Hong Kong Advances Crypto Regulation With New Licensing Framework
Hong Kong regulators are implementing a comprehensive licensing regime for virtual asset service providers, marking a significant step toward formalizing cryptocurrency market oversight. The Financial Services & Treasury Bureau and Securities and Futures Commission confirmed the move following public consultation, receiving over 190 responses from industry participants.
The new rules will subject VIRTUAL asset dealers to securities-like regulations while imposing stringent custody requirements, including secure storage of clients' digital keys. A parallel consultation remains open until January 2026 regarding oversight of advisory and asset management services.
Market participants largely endorsed the regulatory expansion beyond trading platforms to encompass broader virtual asset activities. Authorities noted feedback called for clearer operational guidelines, which have been incorporated into the finalized framework.
