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Hong Kong Sets 2026 Bill to License Crypto Dealers and Custodians

Officials aim to draw institutions by closing custody gaps through a comprehensive rule set.

Overview

  • The FSTB and SFC said they will finalize proposals after a two‑month consultation with more than 190 responses and introduce a bill to LegCo in 2026 as part of the SFC’s ASPIRe roadmap.
  • The plan creates licensing regimes for virtual asset dealing services, including OTC desks and brokers, and a separate regime for custodians.
  • Dealer rules will sit under the Anti‑Money Laundering and Counter‑Terrorist Financing Ordinance using a “same business, same risks, same rules” approach aligned with securities intermediaries.
  • Custodian requirements prioritize private‑key security and client asset segregation to reduce counterparty risk and support institutional participation.
  • A parallel consultation to extend oversight to virtual‑asset advisers and managers is open with comments due Jan. 23, with regulators offering optional pre‑application discussions to prospective applicants.