Hong Kong Forges the Final Links in Its Crypto Regulatory Chain

Hong Kong is finalizing its crypto regulations with new licensing proposals for advisory and asset management services, positioning itself as a global leader in virtual assets.

As Hong Kong continues to make strides in establishing a comprehensive framework for crypto regulation, the latest developments promise to further shape the landscape for virtual asset activities in the region. With the proposals for licensing regimes covering crypto advisory and asset management services, Hong Kong is securing its place among global leaders in this space. What Are the New Licensing Regimes and Why Are They Important? On May 26, 2026, the Hong Kong Financial Services and Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) announced crucial consultation conclusions on legislative proposals that will regulate virtual asset advisory (VA advisory) and virtual asset management (VA management) services. This follows earlier steps taken back in December 2025, when the necessity for new licensing regimes for virtual asset dealing (VA dealing) and custodian services (VA custodians) was confirmed. The new licensing regimes are pivotal as they signal Hong Kong's commitment to creating a secure and robust framework for virtual asset activities. Countries like the European Union, Singapore, and the UAE have long established similar regulations, and now Hong Kong is poised to join their ranks. How Will VA Advisory Services Be Regulated? Under the new licensing regime for VA advisory, operators will be required to provide advice on various aspects of virtual assets, including acquisition timings and conditions. The scope encompasses advice, analyses, and reports that assist recipients in making informed decisions regarding virtual asset transactions. This regime closely references the licensing requirements for Type 4 (advising on securities) under the Securities and Futures Ordinance (SFO), with a clear focus on capturing contemporary market practices such as algorithms, recommendation tools, and trading signals. Interestingly, finfluencers—those influencers doling out advice on specific products or tokens—are also under scrutiny, as the SFC ai