Hong Kong Plans 2026 Legislation for Virtual Asset Dealer and Custodian Regulation
Hong Kong regulators aim to introduce new legislative proposals in 2026 to regulate virtual asset dealers and custodians through a licensing framework under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The proposals, set to be presented to the Legislative Council, are designed to mirror existing securities dealing requirements, ensuring a stringent regulatory environment for virtual assets.
The two-month public consultation on these rules drew more than 190 responses, reflecting significant interest and input from stakeholders. The Securities and Futures Commission (SFC) is also consulting on extending its oversight to include virtual asset advisers and managers, with public comments open until January 23.
The proposed custodian rules focus on the security of private keys and the protection of client assets, while dealer rules will align with licensing requirements for securities intermediaries. These regulatory measures form part of the SFC’s ASPIRe roadmap, aimed at improving access to regulated virtual asset markets. This initiative positions Hong Kong as a leading crypto hub in Asia, presenting a contrasting approach to the stringent crackdown seen in mainland China.
