Hong Kong's virtual asset regulation puzzle adds another piece this year. The Legislative Council will see the real deal; there are no transitional arrangements, but time is given for adjustments. Compliance costs need to be recalculated.

Crypto news, according to the Hong Kong government press release, Acting Secretary for Financial Services and the Treasury, Christopher Hui, stated on June 1st that after implementing licensing for trading platforms and regulation of stablecoins, the next step will be to comprehensively promote the regulation of virtual asset trading, custody, consulting, and management services to connect the entire ecosystem. The proposed regulations stipulate that, unless exempted, anyone engaged in related businesses in Hong Kong must obtain a license or registration from the Securities and Futures Commission. To ensure clear regulation, Hong Kong does not plan to offer a "deemed licensed" transitional arrangement, but will leave time for business adjustments, aiming to submit a draft amendment bill to the Legislative Council within this year (2026).