Hong Kong’s Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) have published the conclusions of their public consultation on a new licensing regime for virtual asset advisory and virtual asset management services. The consultation showed broad market support for the proposed framework under the principle of “same business, same risks, same rules,” aligning these services with existing regulations for traditional securities advisory and discretionary asset management.
The announced framework sets out specific financial resources requirements. Firms not holding client assets will need a minimum liquid capital of HKD 100,000 (approx. $12,760), while those holding client assets must maintain up to HKD 5 million ($638,095) in paid-up capital and HKD 3 million ($328,862) in liquid capital. Dually licensed entities will not face double regulatory capital charges; instead, the highest single capital floor among their authorized activities will apply.
Under the proposals, advisory services will cover recommendations on acquiring or disposing of virtual assets, and management rules apply where firms exercise discretionary control over virtual asset portfolios. The regulators emphasized that the combined framework—alongside parallel proposals for dealing and custody services—is designed to broaden participation in Hong Kong’s digital asset market and create a more robust ecosystem. “The conclusion of further consultation marks the final leg of our journey to complete the regulatory framework for digital assets,” said SFC CEO Julia Leung. “The broad market support demonstrates the strong need for robust and comprehensive regulation.”
The FSTB and SFC aim to introduce a bill to the Legislative Council in 2026. Existing and prospective service providers are encouraged to engage with the SFC early for pre-application discussions. The move is part of Hong Kong’s ongoing effort to become a regulated hub for digital assets, following the mandatory licensing regime for virtual asset trading platforms introduced in June 2023.
