Hong Kong Finalises Plans to License Virtual Asset Advisers and Managers

Hong Kong regulators plan to introduce legislation in 2026 establishing licensing regimes for businesses providing virtual asset advisory and management services.

Hong Kong’s Financial Services and the Treasury Bureau (FSTB) and Securities and Futures Commission (SFC) have published the conclusions of their consultation on regulating virtual asset advisory and management service providers.

The proposed regimes received broad market support, with regulators receiving 51 submissions from stakeholders.

The FSTB and SFC are finalising legislative proposals under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. They aim to introduce a bill into the Legislative Council before the end of 2026.

Licensing scope aligned with traditional finance

Under the “same business, same risks, same rules” principle, the proposed virtual asset advisory regime will be aligned with the scope of Type 4 regulated activity—advising on securities—under the Securities and Futures Ordinance.

The virtual asset management regime will similarly follow the scope of Type 9 regulated activity, which covers asset management.

The advisory regime will cover businesses operating in Hong Kong that issue analyses or reports concerning whether virtual assets should be acquired or disposed of, where the material is intended to assist recipients in making those decisions.

Most consultation respondents supported the proposed exemptions.

Finfluencer rules under review

The SFC said it was continuing to examine the activities of financial influencers and the risks and opportunities they present.

It will review both the existing framework under the Securities and Futures Ordinance and the proposed virtual asset licensing regimes to ensure that the rules remain suitable as the market develops.

The regulator may conduct a separate consultation if it proposes a comprehensive framework covering financial influencers.

Part of wider digital asset framework

The advisory and management regimes will complement Hong Kong’s existing licensing systems for virtual asset trading platforms and stablecoin issuers.

Separate regimes have also been proposed for virtual asset dealing and custody services.

The SFC encouraged businesses currently providing, or planning to provide, virtual asset advisory or management services to begin pre-application discussions with the regulator.