Hong Kong's virtual asset regulatory framework is finally here, with legislative proposals to be submitted before the end of the year, combining mandatory licensing and private key security measures. The approach of prioritizing quality in licensing is quite solid.

Hong Kong plans to legislate on virtual asset advisory and management services, submitting legislative proposals by the end of the year to establish a comprehensive regulatory framework covering trading, custody, advisory, and asset management, and to implement mandatory licensing. The new framework adheres to the principle of "same business, same risk, same rules," aligning with securities and futures regulations, with a focus on strengthening the security of private keys and client assets. The Securities and Futures Commission emphasizes that licensing will prioritize quality, balancing market capacity with regulatory standards.