Hong Kong SFC Hosts Inaugural Virtual Asset Consultative Panel Meeting

Hong Kong is enhancing oversight of the digital asset industry to promote growth. The Securities and Futures Commission (SFC) held the inaugural meeting of the Virtual Asset Consultative Panel (VACP), chaired by Dr. Eric Yip, Executive Director of Intermediaries at the SFC.

Key Developments

The SFC established a regulatory framework requiring all virtual asset trading platforms (VATPs) to register for legal operation.
This framework became effective on June 1, 2023, as part of amendments to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).
The VACP aims to develop policies that encourage innovation and enhance investor protections.
The SFC plans to increase its workforce by 15 members, with eight focusing on virtual asset regulations.
The agency's 2025 budget includes a 7.2% spending increase, totaling HK$2.59 billion ($332.4 million) for regulatory initiatives and technological advancements.

Hong Kong seeks to position itself as a leading crypto hub while balancing innovation with regulatory standards. Other Asian countries, like Singapore, are also advancing in the crypto sector, with significant regulatory approvals granted to major firms.