Hong Kong authorities are fast-tracking plans to regulate virtual asset dealers and custodians, aiming to submit new laws to the Legislative Council in 2026. The Financial Services and the Treasury Bureau and the Securities and Futures Commission confirmed the move after a two-month public consultation that generated nearly 200 responses. The licensing framework will sit under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, bringing crypto service providers in line with traditional securities standards.

Government officials are positioning the city as Asia’s leading crypto hub, signaling confidence in digital assets while nearby mainland China tightens restrictions. Hong Kong has already approved spot crypto ETFs, enabled staking services for licensed exchanges, and introduced over-the-counter licensing measures as part of its ASPIRe roadmap to expand regulated access to virtual asset markets.

Regulators are now reviewing rules for advisers, custodians, and asset managers under a “same business, same risks, same rules” principle. Public feedback on extending oversight to advisory and management firms is open until January 23, with the city pushing to boost investor protection while encouraging industry growth.