Hong Kong Expands Licensing Regime for Virtual Asset Trading and Custody Services, Pursuing Stronger Market Regulation

Hong Kong authorities, led by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC), issued a consultation summary detailing steps to advance the virtual asset trading licensing regime and custody services providers. The move targets stronger regulatory oversight to bolster market stability and sustainable growth in the crypto sector, reinforcing Hong Kong’s reputation as a compliant, investor-friendly crypto hub.

Separately, regulators will launch a one-month public consultation on virtual asset portfolio management services and advisory service providers, with the objective of aligning with the traditional securities market framework. The proposal seeks to clearly define regulated activities under distinct licensing regimes, improving transparency and investor protection for participants in Hong Kong’s crypto market.