Hong Kong’s SFC Sets Clear Crypto Guidelines to Draw Investment and Protect Investors

The Securities and Futures Commission (SFC) of Hong Kong is moving forward with plans to introduce regulatory standards for how corporations manage their crypto assets, marking a significant milestone in the city's ambition to become a leading center for digital assets. This move, prompted by the increasing use of Digital Asset Treasury (DAT) strategies among publicly traded firms, seeks to fill a regulatory gap and provide greater clarity for investors dealing with the unpredictable crypto sector. Chairman Kelvin Wong Tin Yau stressed the importance of formal oversight, pointing out that as more companies add cryptocurrencies to their reserves, current regulations do not sufficiently address the specific risks and governance issues these assets present, as noted in a

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The SFC's attention is a response to the rising trend of businesses turning to crypto as a way to diversify their treasuries. Firms are considering digital assets to guard against inflation, benefit from market expansion, and keep pace with digital innovation. Yet, the absence of well-defined regulations has resulted in inconsistent reporting and unclear risk evaluations for investors. Wong pointed out that without unified standards, companies may not follow best practices in digital asset management, making it difficult for shareholders to accurately assess their risk exposure,

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Protecting investors remains a top priority. The SFC has cautioned that the volatility of cryptocurrencies could have a major effect on a company's finances and market value, making strong risk controls and open reporting essential. The proposed rules are expected to require more detailed disclosures about crypto assets, governance frameworks, and risk management approaches, giving investors the information they need to make sound choices,

. The regulator is also considering whether listed firms should be allowed to acquire , with an emphasis on ensuring that disclosures are in line with solid governance standards, .

Hong Kong’s forward-thinking stance is in line with global efforts to balance technological progress with regulatory oversight. The SFC has already indicated plans to update its listing rules to attract technology companies, including those involved with digital assets. These reforms are designed to strengthen market reliability and ensure investors are treated fairly. Wong mentioned that the SFC’s ongoing reviews will focus on supporting a variety of business listings under a framework established in 2018, which opened the door for pre-revenue biotech companies and multi-class share structures, as previously reported by SCMP.

The SFC’s actions are also part of wider regional trends. For example, Ant Group’s recent application for an "AntCoin" trademark in Hong Kong highlights the city’s growing reputation as a regulated environment for digital assets. At the same time, Nasdaq-listed SKK Holdings has partnered with Chaince Securities to create a tokenization and digital asset treasury plan, showing international interest in blockchain-based financial solutions.

By introducing clear regulations for corporate crypto assets, Hong Kong is working to reinforce its status as a trusted digital asset marketplace. The SFC’s initiatives may serve as a model for other regions facing similar regulatory challenges, reflecting a dedication to encouraging innovation while maintaining investor trust. As the global digital asset industry continues to develop, Hong Kong’s regulatory transparency could be key to attracting institutional investment and supporting long-term sector growth, as highlighted in a Bitcoin World report.

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