FSTB and SFC conclude consultations on virtual asset advisory and management regimes

The Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) today published consultation conclusions on the legislative proposal to regulate virtual asset (VA) advisory and management service providers in Hong Kong (Note 1).

The proposal for the VA advisory and management regimes received broad market support during the consultation (Note 2). Adhering to the “same business, same risks, same rules” principle, the scope of these regimes will be aligned with those for Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance, respectively.

The FSTB and the 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.

Alongside the two other recent proposals for VA dealing and custody regimes (Note 3), 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 (Note 4).

The Chief Executive Officer of the SFC, Ms Julia Leung, said: “The conclusion of further consultation marks the final leg of our journey to complete the regulatory framework for digital assets, paving the way for the long-term scaling of our ecosystem. The broad market support demonstrates the strong need for robust and comprehensive regulation. Aligning with the standards for traditional financial services, the new regimes will bolster investor protection while fostering responsible innovation.”

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said: “The FSTB released in last June the Policy Statement 2.0 on the Development of Digital Assets in Hong Kong, setting out our vision in strengthening risk management and investor protection while promoting responsible financial innovation in the development of Hong Kong as a premier global hub for digital assets. The proposed regulatory regimes for VA advisory and management service providers are integral parts to broaden the coverage of the regulatory framework for digital assets in Hong Kong. Together with the existing licensing regimes for VA trading platforms and stablecoin issuers, as well as the proposed regimes for VA dealing and custodian service providers, our regulatory framework will span across the key nodes of the digital asset ecosystem, building a trusted and sustainable system comparable to that of conventional finance, thereby leading us towards the vision set out in the Policy Statement 2.0.”

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.

End

Notes:

1. Refer to the press release for the FSTB and the SFC's further consultation on VA advisory and VA management regimes launched on 24 December 2025.

2. A total of 51 responses from a broad spectrum of stakeholders were received. For the list of respondents, please refer to the Annex section of the consultation conclusions paper.

3. Please refer to the consultation papers on the legislative proposals to regulate VA dealing and VA custodian service providers on 27 June 2025, and the consultation conclusions on the legislative proposals to regulate VA dealing and VA custodian service providers on 24 December 2025.

4. The proposed regimes support “Access” to Hong Kong's VA market, one of the five pillars under the SFC's “ASPIRe” roadmap issued on 19 February 2025.