Hong Kong Closes Consultation on Virtual Asset Advisory and Management Licensing Hong Kong's Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC)
Hong Kong's Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) have officially concluded their consultation on new licensing regimes for virtual asset (VA) advisory and discretionary management services. The FSTB and SFC published consultation conclusions on legislative proposals to regulate virtual asset dealing and custodian service providers, while simultaneously commencing a further consultation on new regimes for providers of VA advisory and management services.
The FSTB and SFC have flagged their intention to introduce a bill into the Legislative Council in 2026 to implement the VA dealing, custodian, advisory, and management service licensing regimes through amendments to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
Adhering to the "same business, same risks, same rules" principle, the new regimes are modelled on those regulating similar services in the securities market.In response to industry feedback, the SFC and FSTB have indicated they now intend to license VA advisory and VA management services as separate regulated VA services, mirroring the existing securities licensing regime applicable to licensed corporations under the Securities and Futures Ordinance.
The framework sets out distinct capital thresholds depending on the nature of services offered. Firms that hold client assets must maintain a minimum paid-up capital of HKD 5 million (approximately $638,000), while those providing advisory services without custody must meet a lower HKD 100,000 liquid capital threshold.
Any person who carries on a business of providing VA advisory services in Hong Kong must be licensed by or registered with the SFC under the proposed rules.The expanded licensing requirements address gaps in current regulations that cover only trading platforms and stablecoin issuers.
The proposed regimes support "Access" to Hong Kong's VA market, one of the five pillars under the SFC's ASPIRe roadmap issued on 19 February 2025. The move positions Hong Kong as one of the more comprehensive regulatory jurisdictions for digital assets globally, drawing comparisons to legislative efforts underway in the United States, including the Clarity Act.
Sources:FSTB and SFC publish consultation conclusions on virtual asset dealing and custodian services (Hong Kong Government)Hong Kong Regulators Target 2026 Legislation for Virtual Asset Rules (CoinDesk)Hong Kong Concludes Consultations on Virtual Asset Regulation (Gibson Dunn)
