FSTB and SFC Advance Regulatory Framework for Virtual Asset Services

The Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) continue to strengthen Hong Kong’s virtual asset (VA) regulatory framework under the ASPIRe roadmap (ASPIRe: Access, Safeguards, Products, Infrastructure, Relationships).

Following the launch of a joint public consultation on 27 June 2025 to introduce licensing regimes for VA dealers and custodians, consultation conclusions were published on 24 December 2025 with broad market support.

The proposed regimes will empower the SFC to license and supervise VA dealers and custodians, applying the principle of “same business, same risks, same rules” to enhance investor protection and market integrity.

The VA dealer regime will align closely with existing Type 1 regulated activity (Dealing in securities), while the custodian regime will focus on safeguarding client assets, particularly private key management.

In response to market feedback, the FSTB and SFC have also commenced a further consultation on new regimes for VA advisory and management service providers. Legislative proposals will be finalised under the AMLO, with a bill targeted for introduction to the Legislative Council in 2026.