Hong Kong to Propose Virtual Asset Regulation by 2026
- Hong Kong plans to introduce regulations for virtual asset dealers and custodians in the Legislative Council by 2026.
- The proposals follow a two-month public consultation that received over 190 responses.
- New rules will align with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, similar to securities regulations.
- The Securities and Futures Commission (SFC) has already approved staking services and spot crypto exchange-traded funds since early this year.
- A new custodian regime will focus on securing private keys and client asset protection.
These regulatory efforts aim to bolster Hong Kong’s position as a leading crypto hub in Asia, contrasting sharply with China’s crackdown on virtual currencies. The SFC is also consulting on extending oversight to virtual asset advisers and managers under a comparable regulatory framework.
By targeting legislation for virtual asset dealers and custodians by the end of the proposed timeline, Hong Kong seeks to enhance its regulatory landscape significantly. (Source)
