Hong Kong: Financial Services and the Treasury Bureau and Securities and Futures Commission closes consultation on Regulation on dealing in virtual assets

On 29 August 2025, Hong Kong's Financial Services and Treasury Bureau and Securities and Futures Commission closes the consultation on the Regulation on dealing in virtual assets (VA). The regulation proposes mandatory licensing for virtual asset dealing services. The regulation applies to all VA dealing service providers operating in Hong Kong, including simple conversion services to complex brokerage and asset management activities. Licensed providers must meet fit-and-proper tests, maintain a minimum capital of HKD5 million, comply with anti-money laundering requirements, segregate client assets, and use licensed custodians for client VAs. The regulation prohibits unlicensed marketing to Hong Kong residents. Penalties include fines up to HKD 5 million and seven years imprisonment for operating without a licence.