The Financial Services and the Treasury Bureau ("FSTB") and the Securities and Futures Commission ("SFC") launched a joint consultation on June 27, 2025, to introduce regulatory regimes for virtual asset ("VA") dealers and custodians in Hong Kong. These regimes aim to create a secure, robust, and globally competitive VA ecosystem while enhancing investor protection and market integrity. Comments are invited until August 29, 2025.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
Summary of Circular to Virtual Asset Trading Platforms (VATPs) on Licensing Process and Revamped Second-phase Assessment
The latest SFC circular outlines an updated licensing process for virtual asset trading platforms (“VATPs”) including the new Second-phase Assessment procedures
Regulation of - Non-Fungible Tokens in Hong Kong
NFT regulation circular reminds investors of NFT risks and the types of NFTs that may trigger licensing or authorization requirements in Hong Kong.
SPOTLIGHT ON
FAMILY OFFICES
On June 27, 2025, the Financial Services and the Treasury Bureau ("FSTB") and the Securities and Futures Commission ("SFC") initiated a joint consultation to introduce regulatory regimes for virtual asset ("VA") dealers and custodians. This move aligns with Hong Kong’s strategy to create a secure, robust, and globally competitive VA ecosystem, guided by the government’s latest policy statement on digital asset development. The new regimes are designed to attract qualified participants and expand investors' options by linking Hong Kong’s VA liquidity with global financial markets.
The proposed regimes will empower the SFC to license and supervise VA dealers and custodians. Additionally, the SFC will establish standards to ensure robust investor protection and market integrity, adhering to the ‘same business, same risks, same rules’ principle. This advancement is a milestone on the SFC’s ASPIRe roadmap, aiming to cultivate a dynamic and secure digital asset market. Ms. Julia Leung, the Chief Executive Officer of the SFC, highlighted that the introduction of these regulatory regimes will foster a safe and vibrant ecosystem for both institutional and retail investors.
Mr. Christopher Hui, the Secretary for Financial Services and the Treasury, underscored that these licensing regimes, introduced following the Policy Statement 2.0 on Digital Asset Development in Hong Kong, prioritize investor protection. He noted that these regimes will lay a solid foundation for a comprehensive regulatory framework for digital assets, with investor protection as the cornerstone. The objective is to transform Hong Kong’s digital asset ecosystem into a highly trusted and sustainable platform.
The consultation period for interested parties closes on August 29, 2025. The consultation aims to solicit feedback to ensure that the proposed licensing regimes meet the needs of the industry and investors, ultimately contributing to the growth of a thriving digital asset market.
View the full article:Source
