The Financial Services & the Treasury Bureau, together with the Securities & Futures Commission (SFC), published the consultation conclusions today on the legislative proposals for establishing licensing regimes for virtual asset (VA) dealing and custodian service providers.

During the consultation, 101 and 93 submissions were received on the proposed licensing regimes for VA dealing service providers and VA custodian service providers, with the majority of respondents expressing support for expanding the regulatory scope to cover VA dealing and custodian services, following the introduction of the licensing regime for the VA trading platform in June 2023.

The respondents also indicated support for the overall direction of the proposed regulatory requirements and implementation arrangements, while suggesting enhancements and seeking clarification on certain aspects.

The proposed licensing regime for virtual asset dealing service providers will largely align with that for Type 1 (dealing in securities) regulated activity under the Securities & Futures Ordinance, as applicable to conventional securities dealing activities.

As for VA custodian service providers, the proposed licensing regime will focus on managing risks relating to safekeeping private keys of client VAs in Hong Kong to enhance client assets’ security.

Secretary for Financial Services & the Treasury Christopher Hui said: “The proposed establishment of licensing regimes for VA dealing and custodian service providers marks a significant step in enhancing our legal framework for digital assets.”

“The proposed licensing regimes strike a prudent balance among fostering market development, managing risks and protecting investors. They will realise our vision for building a trusted and sustainable digital asset ecosystem, with a view to establishing Hong Kong as a global hub for digital asset innovation,” he added.

SFC Chief Executive Officer Julia Leung supplemented: “The significant progress in our VA regulatory framework ensures Hong Kong remains at the global forefront of digital asset market developments by fostering a trusted, competitive and sustainable ecosystem.”

In response to the feedback received, the bureau and the SFC launched a further public consultation on establishing separate licensing regimes for virtual asset advisory and management service providers.

The revised regulatory approach will model itself on the regulatory framework applicable to the conventional securities market, and provide better clarity concerning the scope of activities regulated under different VA licensing regimes.

The further consultation on the legislative regulation proposal has been uploaded onto the bureau’s website.

Views can be submitted by email or by post to the Financial Services & the Treasury Bureau, 24/F, Central Government Offices, 2 Tim Mei Avenue, Tamar by January 23, 2026.

The legislative proposals for the licensing regimes will be finalised with a target for the bill to be introduced into the Legislative Council in 2026.