Hong Kong virtual asset regimes: SFC license for advisory & management

Hong Kong Financial Services and the Treasury Bureau (FSTB) and SFC don publish consultation conclusions for virtual asset advisory and virtual asset management under the AML/CFT law. Consultation open on June 27, 2025 and dem collect 51 responses; authorities talk say market support wide. Key rules map virtual asset advisory to Type 4 (securities advice) and virtual asset management to Type 9 (asset management). All covered services must follow Hong Kong AMLO requirements, using dealer/custody standards as reference with ‘same business, same risks, same rules’ approach. Dem also clarify capital requirements for Hong Kong virtual asset regimes. Firms must get at least HK$5 million minimum paid-up capital. If dem handle client assets, liquid capital must be HK$3 million; if dem no hold client assets, liquid capital requirement na HK$100,000. SFC CEO Julia Leung talk say dis na final step to finish Hong Kong’s digital-asset regulatory framework, support long-term scaling and investor protection. SFC also urge current and prospective providers make dem join early pre-application phase. Next steps: FSTB and SFC go finalize legislative proposals and aim to introduce bill to Hong Kong’s Legislative Council later in 2026, to complete licensing architecture alongside the existing virtual asset dealing and custody rules. For traders, near-term impact mainly compliance-driven: clearer rules fit boost institutional confidence, but licensing preparation fit raise operating costs and cause friction for smaller firms.