Hong Kong to legislate licensing for crypto trading and custody firms

Hong Kong's Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) plan to legislate a licensing system for cryptocurrency trading and custody firms, Cointelegraph reported. The two agencies announced they have concluded consultations on the new framework. This mandatory system builds upon an optional licensing regime introduced in 2020, under which 11 companies have so far received SFC approval. On the same day, the SFC also released a consultation paper on introducing a licensing system for crypto advisory and management service providers.