Hong Kong to license crypto advisory and management firms

Hong Kong will introduce a licensing regime for virtual asset advisory and management firms, aligning them with financial regulations and setting clear capital requirements, following strong industry support.

Hong Kong is moving forward with a comprehensive licensing framework for virtual asset advisory and management services. Financial regulators have released consultation conclusions, revealing strong industry support for new rules that align virtual asset activities with existing securities and asset management regulations. The proposed framework follows the principle of "same business, same risks, same rules." Firms providing virtual asset advice or portfolio management will be required to obtain licenses similar to those in traditional finance. Capital requirements are specified: firms holding client assets must maintain up to HK$5 million in paid-up capital and HK$3 million in liquid capital, while those not holding client assets need HK$100,000 in liquid capital. These new rules will extend regulatory oversight beyond trading platforms and stablecoin issuers, aiming to further strengthen Hong Kong's digital asset ecosystem. Legislative proposals are expected in 2026, reflecting robust market support and a unified approach to digital asset regulation.