Hong Kong Proposes Licensing Regime for Crypto Trading and Custody Services
Hong Kong’s Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) have launched a joint public consultation on a licensing framework for virtual asset trading and custody service providers. Under the proposal, the SFC would grant and supervise licences for crypto exchanges and custodians, enforce regulations, and set compliance standards based on a “same business, same risk, same rules” principle. The aim is to strengthen investor protection, maintain market integrity and support a sustainable, vibrant digital asset ecosystem in line with the “ASPIRe” roadmap.
Neutral
The introduction of a formal licensing regime is likely to enhance market confidence by clarifying rules for crypto trading and custody, benefiting long-term stability. However, it does not immediately alter trading conditions or liquidity, so short-term price impact is limited. Similar regulatory clarifications in other jurisdictions (e.g., Singapore’s framework) have supported steady growth without sharp market swings.