Hong Kong

February 2025 Securities and Futures Commission

The Securities and Futures Commission outlined 12 major initiatives to "enhance the security, innovation and growth of Hong Kong’s virtual asset (VA) market under a five- pillar ASPIRe roadmap, which stands for Access, Safeguards, Products, Infrastructure and Relationships."

The initiatives will "streamline access for global liquidity, enable adaptive compliance and product frameworks focusing on security, and drive infrastructure upgrades for traditional finance to tap into blockchain efficiency."

Under the roadmap, new frameworks for regulating VA over-the-counter and VA custodian services will be developed, while VA product and service offerings will be expanded. Other measures encompass optimisation of operational requirements for VA trading platforms, combatting illicit activities, investor education and proactive stakeholder engagement.

January 2025 Securities and Futures Commission

The Securities and Futures Commission (SFC) published a Circular 'Findings from inspections on deemed-to-be-licensed virtual asset trading platform applicants and expected standards of conduct for virtual asset trading platform operators'.

January 2025 Securities and Futures Commission

The Securities and Futures Commission (SFC) announced that all new virtual asset trading platform (VATP) applicants can now seek licences under its swift licensing process.

This new licensing approach requires VATP applicants to implement their policies, procedures, systems and controls before conducting an external assessment on these measures. The SFC will become a party to the engagement to supervise the overall external assessment process.

January 2025 Securities and Futures Commission

The Securities and Futures Commission (SFC) published a Circular to new virtual asset trading platforms seeking to be licensed – Enhanced licensing process and revamped external assessments.

The Securities and Futures Commission (SFC) recently announced its swift licensing process and revamped second-phase assessment for virtual asset trading platforms (VATPs) in its Circular issued on 18 December 2024. This circular focuses on the licensing process and revamped external assessment for new corporations applying for a licence to operate a VATP, and supersedes the Scope of External Assessment Reports issued in June 2023. All VATP applicants that submit licence applications after 18 December 2024 should refer to this circular.

January 2025 Hong Kong Monetary Authority

The Hong Kong Monetary Authority (HKMA) issued a letter on 13 January 2025 to consult the banking industry on implementation of the prudential treatment of cryptoasset exposures held by authorized institutions.

December 2024 Securities and Futures Commission

The Securities and Futures Commission published 'Circular to virtual asset trading platforms on licensing process and revamped Second-phase Assessment'.

December 2024 Securities and Futures Commission

The Securities and Futures Commission published 'Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities - Anti-Money Laundering / Counter-Financing of Terrorism - Webinar Materials'.

December 2024 Hong Kong Monetary Authority

On 6 December 2024, the Hong Kong SAR government published the Stablecoins Bill in the Hong Kong SAR Gazette. 

The Bill aims to establish a licensing and regulatory regime for issuers of fiat-referenced stablecoins in Hong Kong. The Bill follows the consultation conclusions on the Discussion Paper on Crypto-assets and Stablecoins issued by the Hong Kong Monetary Authority on 31 January 2023. 

See also our article Hong Kong’s New Stablecoins Bill.

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