Hong Kong announces results of virtual asset regulatory framework consultation

Hong Kong's Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) have announced the results of their consultation on a regulatory framework for virtual asset services. The proposal to introduce a licensing system for these services received broad support from the market. The new licensing regime will operate under the principle of "Same business, same risk, same rules," and its regulatory scope will be designed to align with activities already regulated under the existing Securities and Futures Ordinance (SFO). Authorities stated they expect the new system to encourage greater participation in Hong Kong's digital asset market and contribute to building a secure industry ecosystem.