Hong Kong Finalizes Crypto Rules to Cement Global Hub Status
Hong Kong has officially established new regulations for digital assets, concluding a public consultation aimed at a licensing framework for companies dealing with virtual assets. On Tuesday, the Financial Services and the Treasury Bureau and the Securities and Futures Commission announced the proposals would be forwarded to the Legislative Council later this year, following favorable feedback during a month-long consultation that began in December. Firms providing advisory services must comply with rigorous capital standards, including a minimum liquid capital of HK$100,000 for non-custodial firms, and higher requirements for others. Strict client verification and marketing guidelines will also be mandated.
Key facts
- Hong Kong finalized its crypto regulatory framework.
- The FSTB and SFC announced the rules on Tuesday.
- The rules received broad market support.
- The framework will head to the Legislative Council later this year.
- The consultation was launched in December and lasted one month.
- Firms providing advice on virtual asset trading must meet capital requirements.
- Companies not holding client assets need HK$100,000 minimum liquid capital.
- Other firms need at least HK$5 million paid-up capital and HK$3 million liquid capital.
Entities
Institutions
- Financial Services and the Treasury Bureau (FSTB)
- Securities and Futures Commission (SFC)
- Legislative Council
Locations
- Hong Kong