Policy Share Share this article Copy linkX (Twitter)LinkedInFacebookEmail Hong Kong regulators target 2026 legislation Policy Share Share this article Copy linkX (Twitter)LinkedInFacebookEmail Hong Kong regulators target 2026 legislation

Hong Kong regulators target 2026 legislation for virtual asset dealer and custodian rules

Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail

Hong Kong regulators target 2026 legislation for virtual asset dealer and custodian rules

The FSTB and SFC concluded consultations on virtual regimes and plan to introduce new bill to LegCo next year.

By Sheldon Reback, AI Boost
Updated Dec 25, 2025, 12:02 p.m. Published Dec 25, 2025, 12:00 p.m.
The Legislative Council building in Hong Kong (Andy Yip/Shutterstock)

What to know:

  • Hong Kong plans to introduce legislative proposals to regulate virtual asset dealers and custodians in 2026.
  • The proposals aim to create a licensing framework under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
  • The SFC is consulting on extending oversight to virtual asset advisers and managers, with comments due by Jan. 23.

Hong Kong plans to complete proposals to regulate virtual asset dealers and custodians and introduce the rules to the city’s Legislative Council in 2026, the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) said Wednesday.

The proposals, developed after a two-month public consultation that drew more than 190 responses, are intended to create a licensing framework for virtual asset dealing and custodial services. The rules will fall under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance and mirror existing requirements for securities dealing.

STORY CONTINUES BELOW
Don't miss another story.Subscribe to the State of Crypto Newsletter today. See all newsletters
Sign me up

Hong Kong's government is developing a regulatory environment to encourage the development of the city's crypto industry in an effort to establish it as Asia's crypto hub of choice over Singapore. Its stance contrasts with China's, which is intensifying its crackdown on virtual currencies.

In February, the SFC announced new licensing regimes for over-the-counter trading alongside a review of derivatives and margin trading for virtual assets. In April, it greenlit staking services for licensed exchanges and funds, albeit under strict asset control and risk disclosure requirements. Spot crypto exchange-traded funds have been trading since 2024.

The proposed custodian regime focuses on securing private keys and protecting client assets, while the dealer rules align with licensing expectations for securities intermediaries. Both are part of the SFC’s broader ASPIRe roadmap aimed at improving access to regulated virtual asset markets.

The SFC also started a consultation to extend oversight to virtual asset advisers and managers. The regime would follow the “same business, same risks, same rules” principle and apply standards comparable to those for securities advisory and asset management services, the regulators said. Comments are due by Jan. 23.

Hong KongCustodyLegislation
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.

More For You

State of the Blockchain 2025

Commissioned byInput Output Group

L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.

What to know:

2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.

This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.

View Full Report

More For You

EU’s crypto tax reporting starts in January with threat of asset seizure

New directive, which operates alongside MiCA, expands tax data sharing, sets July 1 compliance deadline for exchanges across bloc.

What to know:

  • The European Union's tax-reporting directive, effective Jan. 1, mandates crypto-asset service providers to report detailed user and transaction data to national tax authorities.
  • The DAC8 rules aim to close tax reporting gaps in the crypto economy, enhancing visibility similar to that of bank accounts and securities.
  • Crypto firms have until July 1 to comply with DAC8's reporting requirements, after which non-compliance may result in penalties.
Read full story
Latest Crypto News

Bitcoin and ether ETFs see outflows ahead of Christmas, led by IBIT and ETHE

XRP ETF net assets cross $1.25 billion milestone, but price-action muted

Bitcoin briefly trades at $24,000 on Binance’s USD1 pair in flash move

Circle platform promising tokenized gold, silver swaps is 'fake,' company says

Filecoin drops 2% as crypto markets weaken

The Protocol: Aave community split

Top Stories

Bitcoin briefly trades at $24,000 on Binance’s USD1 pair in flash move

Circle platform promising tokenized gold, silver swaps is 'fake,' company says

Crypto M&A hits record $8.6 billion in 2025 as Trump’s regulatory stance spurs deals

Bitcoin and ether ETFs see outflows ahead of Christmas, led by IBIT and ETHE

XRP ETF net assets cross $1.25 billion milestone, but price-action muted

XRP price reaction muted even as new income-generation opportunity appears

Market Opportunity
CyberKongz Logo
CyberKongz Price(KONG)
$0.001589
$0.001589$0.001589
+0.18%
USD
CyberKongz (KONG) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny

Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny

The post Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny appeared on BitcoinEthereumNews.com. The cryptocurrency world is buzzing with a recent controversy surrounding a bold OpenVPP partnership claim. This week, OpenVPP (OVPP) announced what it presented as a significant collaboration with the U.S. government in the innovative field of energy tokenization. However, this claim quickly drew the sharp eye of on-chain analyst ZachXBT, who highlighted a swift and official rebuttal that has sent ripples through the digital asset community. What Sparked the OpenVPP Partnership Claim Controversy? The core of the issue revolves around OpenVPP’s assertion of a U.S. government partnership. This kind of collaboration would typically be a monumental endorsement for any private cryptocurrency project, especially given the current regulatory climate. Such a partnership could signify a new era of mainstream adoption and legitimacy for energy tokenization initiatives. OpenVPP initially claimed cooperation with the U.S. government. This alleged partnership was said to be in the domain of energy tokenization. The announcement generated considerable interest and discussion online. ZachXBT, known for his diligent on-chain investigations, was quick to flag the development. He brought attention to the fact that U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce had directly addressed the OpenVPP partnership claim. Her response, delivered within hours, was unequivocal and starkly contradicted OpenVPP’s narrative. How Did Regulatory Authorities Respond to the OpenVPP Partnership Claim? Commissioner Hester Peirce’s statement was a crucial turning point in this unfolding story. She clearly stated that the SEC, as an agency, does not engage in partnerships with private cryptocurrency projects. This response effectively dismantled the credibility of OpenVPP’s initial announcement regarding their supposed government collaboration. Peirce’s swift clarification underscores a fundamental principle of regulatory bodies: maintaining impartiality and avoiding endorsements of private entities. Her statement serves as a vital reminder to the crypto community about the official stance of government agencies concerning private ventures. Moreover, ZachXBT’s analysis…
Share
BitcoinEthereumNews2025/09/18 02:13
Ozak AI’s $5M Presale Momentum Points Toward a Powerful Post-Listing Breakout — Forecasts Show $5–$10 Targets Within Reach

Ozak AI’s $5M Presale Momentum Points Toward a Powerful Post-Listing Breakout — Forecasts Show $5–$10 Targets Within Reach

As the extensive crypto market is fighting hard with volatility, the project that has continued to surge with unstoppable strength is Ozak AI ($OZ). The official
Share
Coinstats2025/12/27 06:30
Omeros Announces New Date for YARTEMLEA® Approval Conference Call

Omeros Announces New Date for YARTEMLEA® Approval Conference Call

— Omeros to Host Conference Call Wednesday, January 7, 2026 at 4:30 p.m. ET — SEATTLE–(BUSINESS WIRE)–Omeros Corporation (NASDAQ: OMER) today announced a revised
Share
AI Journal2025/12/27 07:46