Coinspeaker
Jan 20, 2026 upd. 23 Jan
7 1

Hong Kong Asset Managers Resist New Crypto Licensing Requirements

2 min

Hong Kong's securities industry is challenging proposed regulatory changes that would require asset managers to obtain full virtual asset licenses even for minimal cryptocurrency exposure.

  • The Hong Kong Securities and Futures Professionals Association (HKSFPA) opposes the removal of the existing 10% threshold, which exempts firms from additional licensing if their crypto exposure is below this level.
  • Under the new rules, a manager with just 1% allocated to Bitcoin would need a complete virtual asset management license.
  • The current framework allows up to 10% crypto investment without extra licensing, requiring only notification to the Securities and Futures Commission (SFC).

Hong Kong's proposed crypto licensing changes | Source: FSTB/SFC Consultation Conclusions, December 2025.

  • Proposed changes involve a separate licensing regime under the AML and CTF Ordinance, with penalties including imprisonment and fines for non-compliance.
  • The SFC defends the removal of the threshold as necessary for consistent investor protection and oversight.
  • The HKSFPA argues the custody rules are impractical for funds investing in early-stage tokens.

This proposal is part of Hong Kong's strategy to become a global digital asset hub. The consultation period ends on January 23, aiming for legislative action by 2026. The HKSFPA seeks reinstatement of the threshold exemption and a transitional grace period for current practitioners.