Hong Kong Crypto Rules Near Final Stage With New VA Licensing Plan

TLDR

• Hong Kong nears final VA rules for crypto advisory and management firms
• SFC backs new VA licensing plan as Hong Kong expands crypto oversight
• Hong Kong targets 2026 bill for VA advisory and management licensing
• New VA rules bring crypto advisory and asset management under oversight
• Hong Kong strengthens digital asset framework with wider VA licensing plan

Hong Kong moved its crypto rulebook nearer completion after regulators backed new VA licensing plans for advisory and management services. The proposal targets firms giving virtual asset advice and managing digital asset portfolios. It also adds another regulated layer to the city’s wider digital asset framework.

Hong Kong Advances VA Advisory Rules

Hong Kong’s FSTB and SFC published consultation conclusions after receiving broad support from market participants. The plan follows the principle of same business, same risks, same rules. VA advisory rules will match existing standards for securities advice.

The advisory regime will cover firms that recommend buying or selling virtual assets. It will also apply when businesses provide advice as part of paid services. Hence, firms offering VA recommendations will need proper licensing under the proposed framework.

The SFC already licenses virtual asset trading platforms, while Hong Kong also regulates stablecoin issuers. However, advisory and management services still need clearer rules. The new plan closes that gap and strengthens oversight across key digital asset activities.

VA Management Licensing Nears Final Stage

The proposed VA management regime will cover firms that control virtual asset portfolios on behalf of clients. It will apply when managers make investment decisions with discretion. As a result, digital asset portfolio managers will face rules similar to traditional asset managers.

Regulators also set capital standards for different business models. Firms that do not hold client assets need at least HKD 100,000 in liquid capital.Firms holding client assets need higher paid-up and liquid capital levels.

The framework also avoids double capital burdens for dually licensed firms. Instead, firms will follow the highest capital requirement across their approved activities. This approach supports compliance while keeping the licensing structure clear.

Wider Crypto Framework Takes Shape

Hong Kong plans to introduce the VA advisory and management bill into the Legislative Council in 2026. The FSTB and SFC will now finalize the legal proposal. Besides, regulators urged existing and prospective firms to begin early talks with the SFC.

The new regimes will sit beside proposed rules for VA dealing and custody services. Together, these measures will expand supervision across trading, advice, custody, and asset management. Hong Kong aims to build a complete digital asset regulatory system.

The plan also supports Hong Kong’s push to become a major digital asset hub. Its ASPIRe roadmap focuses on access, safeguards, products, infrastructure, and relationships. With the latest VA proposal, Hong Kong moves closer to a finance-grade crypto framework.

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