Hong Kong group warns crypto licensing rollout risks forced shutdowns
The warning comes as Hong Kong consults on new virtual asset advisory and management licenses, expanding oversight beyond crypto trading platforms.
The Hong Kong Securities & Futures Professionals Association (HKSFPA) warned that the city’s proposed rollout of new crypto licensing regimes could unintentionally force compliant crypto managers to cease activities if regulators proceed without transitional arrangements.
The warning centers on what the group described as a potential “hard start,” under which existing firms would be required to be fully licensed by the commencement date of the new rules or cease regulated activities while their applications are under review.
Hong Kong’s Securities and Futures Commission and the Financial Services and the Treasury Bureau are currently consulting on new licensing regimes that cover virtual asset dealing, advisory and management services, which would expand regulatory oversight beyond the city’s existing framework for crypto trading platforms.
Read more
You May Also Like
Why Multicoin Capital’s Kyle Samani Is Leaving Crypto for AI and Robotics
SUI Price Rebounds Above $1 as HashKey Enables Trading Support
BitGo wins BaFIN nod to offer regulated crypto trading in Europe
BitGo’s move creates further competition in a burgeoning European crypto market that is expected to generate $26 billion revenue this year, according to one estimate. BitGo, a digital asset infrastructure company with more than $100 billion in assets under custody, has received an extension of its license from Germany’s Federal Financial Supervisory Authority (BaFin), enabling it to offer crypto services to European investors. The company said its local subsidiary, BitGo Europe, can now provide custody, staking, transfer, and trading services. Institutional clients will also have access to an over-the-counter (OTC) trading desk and multiple liquidity venues.The extension builds on BitGo’s previous Markets-in-Crypto-Assets (MiCA) license, also issued by BaFIN, and adds trading to the existing custody, transfer and staking services. BitGo acquired its initial MiCA license in May 2025, which allowed it to offer certain services to traditional institutions and crypto native companies in the European Union.Read more