Hong Kong's Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) published consultation conclusions for licensing regimes governing virtual asset advisory and virtual asset management services under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. 

The consultation showed broad market support for the proposed regimes, with respondents largely agreeing with the policy direction under the “same business, same risks, same rules” principle. The framework aligns the scope of virtual asset advisory and management with existing regulated activities covering securities advisory and discretionary asset management, the SFC said in a statement on Tuesday.

Under the proposed structure, advisory services would capture business activities involving recommendations on the acquisition or disposal of virtual assets, while management rules would apply where firms exercise discretionary control over virtual asset portfolios. 

The regimes also set baseline financial resources requirements, including minimum liquid capital of HKD 100,000 ($12,760) for firms not holding client assets, and up to HKD 5 million ($638,095) in paid-up capital alongside HKD 3 million ($328,862) in liquid capital where client assets are held.

Additionally, the proposed framework stipulates that dually licensed entities will not face double regulatory capital requirements, instead defaulting to the highest capital floor among their authorized activities.

Alongside parallel proposals for virtual asset dealing and custody services, regulators said the combined framework is designed to broaden participation in Hong Kong’s digital asset market while supporting what they described as a more robust and secure ecosystem.

"The conclusion of further consultation marks the final leg of our journey to complete the regulatory framework for digital assets, paving the way for the long-term scaling of our ecosystem," SFC CEO Julia Leung said. "The broad market support demonstrates the strong need for robust and comprehensive regulation. Aligning with the standards for traditional financial services, the new regimes will bolster investor protection while fostering responsible innovation."

The FSTB and SFC aim to introduce a bill to the Legislative Council in 2026. Existing and prospective VA advisory and management service providers are encouraged to engage with the SFC early to initiate pre-application discussions, regulators said.