Regulatory Roadmap for Hong Kong’s Virtual Asset Market
The Securities and Futures Commission (SFC) in Hong Kong has recently issued a regulatory roadmap for the virtual asset (VA) market in the region. The roadmap, titled “‘A-S-P-I-Re’ Roadmap for a Resilient Virtual Asset Ecosystem,” outlines a five-pillar framework aimed at addressing emerging priorities in the VA space and future-proofing Hong Kong’s VA ecosystem.
The roadmap includes specific regulatory initiatives such as the establishment of licensing regimes for VA over-the-counter (OTC) trading services and custodian services, exploring professional investor-specific regulatory frameworks, and a regulatory framework for financial influencers. These initiatives are intended to streamline market entry, optimize compliance burdens, expand product offerings, modernize infrastructure, and empower investors and industry through education and transparency.
In related news, the Financial Secretary’s 2025-26 Budget Speech noted that consultations on the proposed licensing regimes for VA OTC trading and custodian services will take place in 2025. The Government also plans to issue a second policy statement on the development of VAs.
The SFC’s roadmap is based on an analysis of the market’s composition, dynamics, and geographic nuances, including market manipulation, system fragility, misinformation, fraud, and volatility risks. The roadmap aims to address these challenges and shape the future landscape of the VA market in Hong Kong.
Businesses and investors involved in VA-related activities in Hong Kong are advised to closely follow the development of the regulatory framework and seek professional support to understand the legal and regulatory implications. The roadmap is a significant step towards creating a resilient and competitive virtual asset marketplace in Hong Kong.
