Hong Kong Targets Virtual Asset Legislation by 2026

Hong Kong’s FSTB and SFC aim for 2026 legislation on virtual asset dealer and custodian rules, enhancing the digital asset framework.

This legislative move signals Hong Kong’s commitment to becoming a global hub for digital asset innovation, affecting market trust and development.

Hong Kong regulators aim for 2026 legislation targeting virtual asset dealer and custodian rules. The Financial Services and Treasury Bureau and Securities and Futures Commission lead this initiative after concluding a public consultation.

Key figures, including Christopher Hui and Julia Leung, emphasized the establishment of licensing to foster a sustainable digital asset ecosystem. Christopher Hui, Secretary for Financial Services and the Treasury, FSTB, stated, “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 help 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.”

The proposed licensing regimes affect virtual assets across different sectors, aiming to bolster market development and investor confidence. Existing and prospective VA service providers are directly impacted by these imminent changes.

Financial implications include minimum capital requirements for custodians, ensuring a structured and responsible market environment. Hong Kong’s positioning as an innovation leader may further influence global financial systems and regulatory standards.

Stakeholders anticipate the legislative impact on Hong Kong’s financial markets. This strategy is poised to attract global technology and finance leaders, fortifying Hong Kong’s status in the digital economy.

Potential outcomes include a more responsive regulatory framework and stronger market viability. The ASPIRe roadmap guides this transformation, establishing a trusted ecosystem that supports responsible innovation in the virtual asset sector.