Hong Kong's Financial Services and the Treasury Bureau and Securities and Futures Commission publish consultation conclusions on separate licensing for virtual asset advisory and management providers

Hong Kong's Financial Services and the Treasury Bureau and the Securities and Futures Commission have published consultation conclusions on legislative proposals to establish separate licensing regimes for virtual asset advisory service providers and virtual asset management service providers. The authorities are proceeding with a framework that extends Hong Kong's digital asset rulebook by regulating these activities on lines similar to the conventional securities market. The one month consultation, completed in late January, received 51 submissions. Most respondents supported separate regimes for advisory and management providers, as well as the proposed scope and exemptions, while also seeking enhancements and clarifications. Under the principle of same activity same risks same regulation, the advisory regime will be aligned with Type 4 advising on securities regulated activity and the management regime with Type 9 asset management regulated activity under the Securities and Futures Ordinance. The authorities are now finalising legislative proposals for virtual asset dealing, custodian, advisory and management service providers, with a target of introducing the relevant bill into the Legislative Council within this year.