According to Hong Kong’s FSTB and SFC, AML/CTF-based licensing for virtual asset dealers and custodians will be introduced to the Legislative Council in 2026, with oversight extensions to advisers and managers now out for consultation.
Hong Kong’s Financial Services and the Treasury Bureau (FSTB) and Securities and Futures Commission (SFC) said they will complete proposals to regulate virtual asset dealers and custodians and introduce the rules to the Legislative Council in 2026. Developed after a two-month consultation that received over 190 responses, the framework will license dealing and custodial services under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, mirroring requirements for securities dealing. The custodian regime emphasizes private-key security and client asset protection, while dealer rules align with standards for securities intermediaries. These measures form part of the SFC’s ASPIRe roadmap to improve access to regulated virtual asset markets. The SFC also launched a consultation to extend oversight to virtual asset advisers and managers under the “same business, same risks, same rules” principle, with comments due by Jan. 23. Earlier initiatives included new OTC trading licensing and reviews of derivatives and margin trading (February), approval of staking services for licensed exchanges and funds with strict controls (April), and the availability of spot crypto ETFs since 2024.