Hong Kong will establish a licensing system for virtual asset advisors and asset management services

The Financial Services and the Treasury Bureau of Hong Kong and the Securities and Futures Commission have released a consultation summary confirming the establishment of a licensing system for virtual asset advisors and management service providers. The new system is designed based on the business scope of Class 4 and Class 9 of the Securities and Futures Regulations, and is included in the Anti Money Laundering and Counter Terrorist Financing Regulations. The goal is to submit a draft amendment by 2026. Along with the arrangement of trading and custody licenses, Hong Kong will form a regulatory framework covering the entire chain of virtual assets, and relevant institutions are encouraged to communicate with the Securities and Futures Commission on licensing matters as soon as possible.