Hong Kong plans to finish proposals to manage digital asset sellers and custodians and introduce the principles to the town’s Legislative Council in 2026, the Monetary Companies and the Treasury Bureau (FSTB) and the Securities and Futures Fee (SFC) mentioned Wednesday.
The proposals, developed after a two-month public session that drew greater than 190 responses, are meant to create a licensing framework for digital asset dealing and custodial providers. The principles will fall underneath the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance and mirror current necessities for securities dealing.
Hong Kong’s authorities is creating a regulatory setting to encourage the event of the town’s crypto trade in an effort to ascertain it as Asia’s crypto hub of selection over Singapore. Its stance contrasts with China’s, which is intensifying its crackdown on digital currencies.
In February, the SFC introduced new licensing regimes for over-the-counter buying and selling alongside a evaluation of derivatives and margin buying and selling for digital belongings. In April, it greenlit staking providers for licensed exchanges and funds, albeit underneath strict asset management and threat disclosure necessities. Spot crypto exchange-traded funds have been buying and selling since 2024.
The proposed custodian regime focuses on securing non-public keys and defending consumer belongings, whereas the supplier guidelines align with licensing expectations for securities intermediaries. Each are a part of the SFC’s broader ASPIRe roadmap geared toward enhancing entry to regulated digital asset markets.
The SFC additionally began a session to increase oversight to digital asset advisers and managers. The regime would comply with the “similar enterprise, similar dangers, similar guidelines” precept and apply requirements similar to these for securities advisory and asset administration providers, the regulators mentioned. Feedback are due by Jan. 23.
