Hong Kong’s top finance bodies have published consultation conclusions on their proposed licensing regimes to govern virtual asset advisory and virtual asset management services under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AML/CFT).
The Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC)—the government bureau that oversees policies for financial services, taxation, and public finance, and the independent regulator that supervises Hong Kong’s securities and futures markets, respectively—published this week their consultation conclusions on the legislative proposal to regulate virtual asset advisory and management service providers in Hong Kong.
According to the two authorities, the consultation, which was launched on June 27, 2025, received “broad market support” for the proposed regimes, which aim to strengthen risk management and investor protection, “while promoting responsible financial innovation in the development of Hong Kong as a premier global hub for digital assets.”
The consultation received a total of 51 responses from a broad spectrum of stakeholders, with respondents reportedly agreeing that the framework should follow a “same business, same risks, same rules” principle.
Specifically, for virtual asset dealers, the regimes will closely align with those for securities dealers, while for custodians, the new regimes will focus on managing risks related to the safekeeping of client virtual asset private keys in Hong Kong to secure client assets and protect investors.
“The conclusion of further consultation marks the final leg of our journey to complete the regulatory framework for digital assets, paving the way for the long-term scaling of our ecosystem,” said SFC CEO Julia Leung. “The broad market support demonstrates the strong need for robust and comprehensive regulation.”
She added that “aligning with the standards for traditional financial services, the new regimes will bolster investor protection while fostering responsible innovation.”
This sentiment was echoed by Secretary for Financial Services and the Treasury, Christopher Hui, who said that “the proposed regulatory regimes for VA [Virtual Asset] advisory and management service providers are integral parts to broaden the coverage of the regulatory framework for digital assets in Hong Kong.”
The FSTB and the SFC said they will now proceed with finalizing the legislative proposals for the new regimes under the territory’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance, aiming to introduce a bill into the Legislative Council later this year.
The SFC also encouraged existing and prospective virtual asset advisory and management service providers to “engage with it early to initiate pre-application discussions,” saying that this would allow entities to better understand the proposed regimes, facilitate more efficient licensing processes, and ensure their regulatory compliance under the new regimes.
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