Key Takeaways
- • Hong Kong's Financial Services and Treasury Bureau (FSTB) and Securities and Futures Commission (SFC) issued consultation conclusions on June 3, 2026, proposing new licensing regimes for virtual asset (VA) advisory and virtual asset management services, completing the regulatory framework for crypto activities.
- • This announcement follows December 2025 consultation conclusions on VA dealing and VA custodian services, establishing a phased approach to comprehensive crypto regulation covering dealing, custody, advisory, and asset management.
- • Hong Kong will join jurisdictions including the European Union, Singapore, and the UAE in implementing a full regulatory framework for centralized virtual asset activities, aligning crypto oversight with existing securities and futures regimes.
- • The regulatory expansion builds on the 2023 amendment to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), which first introduced the virtual asset service provider (VASP) regime with crypto trading platforms as initial regulated entities.
Summary
Hong Kong has advanced toward establishing comprehensive cryptocurrency regulation with the issuance of consultation conclusions on virtual asset advisory and management services. On May 26, 2026, the FSTB and SFC published their recommendations for new licensing frameworks governing VA advisory and VA management activities, marking the final phase of a multi-year regulatory buildout.
The current proposal completes a tiered regulatory approach that began in December 2025, when authorities released consultation conclusions on VA dealing and custodian services. Together, these measures create an integrated licensing regime spanning the full range of virtual asset activities: dealing, custody, advisory services, and asset management. This structure mirrors regulatory approaches adopted by developed financial centers globally, translating existing securities and futures oversight principles to the cryptocurrency sector.
The regulatory initiative builds on foundational work completed in 2023, when Hong Kong amended the AMLO to establish the VASP regime, initially targeting virtual asset trading platform operators. By extending licensing requirements to advisory and management services, Hong Kong positions itself alongside the EU, Singapore, and the UAE as jurisdictions with holistic oversight of centralized crypto activities. According to the authorities, this comprehensive framework supports Hong Kong's strategic objective of fostering a sustainable and internationally competitive virtual asset ecosystem while maintaining financial integrity and investor protection standards consistent with traditional finance regulation.
The current proposal completes a tiered regulatory approach that began in December 2025, when authorities released consultation conclusions on VA dealing and custodian services. Together, these measures create an integrated licensing regime spanning the full range of virtual asset activities: dealing, custody, advisory services, and asset management. This structure mirrors regulatory approaches adopted by developed financial centers globally, translating existing securities and futures oversight principles to the cryptocurrency sector.
The regulatory initiative builds on foundational work completed in 2023, when Hong Kong amended the AMLO to establish the VASP regime, initially targeting virtual asset trading platform operators. By extending licensing requirements to advisory and management services, Hong Kong positions itself alongside the EU, Singapore, and the UAE as jurisdictions with holistic oversight of centralized crypto activities. According to the authorities, this comprehensive framework supports Hong Kong's strategic objective of fostering a sustainable and internationally competitive virtual asset ecosystem while maintaining financial integrity and investor protection standards consistent with traditional finance regulation.
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