Overview
- Financial regulators concluded consultations and said they will finalize proposals and aim to introduce a dealer and custodian licensing bill to LegCo in 2026 after receiving more than 190 submissions.
- Firms offering virtual asset dealing or custody in Hong Kong will be required to obtain licenses once the new framework takes effect, with coverage spanning VA‑fiat and VA‑VA conversions, brokerage, block trades, and services offered through physical outlets.
- Any entity holding or controlling client private keys will need to be licensed or registered, with rules emphasizing asset segregation, internal controls over key management, enhanced cybersecurity, and business continuity planning.
- Dealers must place client assets only with licensed or registered custodians operating in Hong Kong, and applicants will face fit‑and‑proper tests plus proposed minimum capital levels of about HK$5 million for dealers and HK$10 million for custodians.
- Authorities opened a further consultation on extending oversight to virtual asset advisers and managers with comments due Jan. 23, and invited pre‑application discussions as part of the SFC’s ASPIRe roadmap to attract institutional participation.