In 2026, Hong Kong is set to introduce regulatory proposals for virtual asset dealers and custodians, as announced by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC). The initiative aims to establish a licensing framework that aligns with existing securities regulations and addresses anti-money laundering and counter-terrorism financing requirements.
The proposals follow a two-month public consultation that garnered over 190 responses, reflecting a keen interest in shaping a robust regulatory environment. Hong Kong's government is focusing on positioning the city as Asia's leading crypto hub, contrasting sharply with China's stringent measures against virtual currencies.
As part of ongoing regulatory developments, the SFC has already implemented new licensing regimes for over-the-counter trading and approved staking services with strict asset control requirements. The proposed custodian regime emphasizes the security of private keys and client asset protection, while dealer rules will mirror licensing expectations set for securities intermediaries.
Additionally, the SFC has initiated a consultation aimed at extending oversight to virtual asset advisers and managers, adhering to the principle of aligning regulations across similar business risks. Stakeholders are invited to submit comments by January 23.