On May 26, 2026, the FSTB and SFC published consultation conclusions on regulating virtual asset advisory and management service providers in Hong Kong. The regimes align with Type 4 and Type 9 activities under the Securities and Futures Ordinance, with a bill aimed for introduction into the Legislative Council in 2026.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On May 26, 2026, the Financial Services and the Treasury Bureau ("FSTB") and the Securities and Futures Commission ("SFC") published consultation conclusions on the legislative proposal to regulate virtual asset advisory and management service providers in Hong Kong.
# Regulatory Framework and Legislative Timeline
The proposal received broad market support during the consultation, with 51 responses from a broad spectrum of stakeholders. Adhering to the “same business, same risks, same rules” principle, the scope of these regimes will be aligned with Type 4 and Type 9 regulated activities under the Securities and Futures Ordinance. The FSTB and SFC will now proceed to finalise the legislative proposals for the new regimes under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), aiming to introduce a bill into the Legislative Council in 2026.
# Strategic Context and Leadership Commentary
Alongside the two other recent proposals for VA dealing and custody regimes, this suite of new regimes will increase participation in Hong Kong’s digital asset market while fostering a robust and secure ecosystem under the SFC’s ASPIRe roadmap. Ms Julia Leung, the Chief Executive Officer of the SFC, stated that the conclusion of further consultation marks the final leg of their journey to complete the regulatory framework for digital assets. Mr Christopher Hui, the Secretary for Financial Services and the Treasury, noted that the proposed regulatory regimes are integral parts to broaden the coverage of the regulatory framework for digital assets in Hong Kong.
# Compliance and Engagement Recommendations
Existing and prospective VA advisory and management service providers are strongly encouraged to engage with the SFC early to initiate pre-application discussions. This will allow entities to better understand the proposed regimes, facilitate more efficient licensing processes, and ensure their regulatory compliance under the new regimes.
# Referential Documentation
Stakeholders should refer to the press release for the consultation launched on 24 December 2025, noting 51 responses received with the respondent list in the Annex. Relevant consultation papers on VA dealing and custodian service providers were issued on 27 June 2025 and concluded on 24 December 2025. These regimes support Access to the VA market under the SFC’s ASPIRe roadmap issued on 19 February 2025.
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