Hong Kong sets foundation for new virtual asset advisory and management licensing regimes

The Securities and Futures Commission (SFC) and the Financial Services and the Treasury Bureau (FSTB) published the consultation conclusions on Hong Kong’s proposed regulatory regimes for Virtual Asset (VA) advisory and VA management service providers on 26 May 2026.

The dedicated licensing regimes will be established under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), with a bill expected to be introduced into the Legislative Council in 2026. The scope of the new regimes will align with Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance (SFO).

These new AMLO-based licences will replace the current reliance on terms and conditions imposed on SFO-licensed intermediaries under the SFC-HKMA Joint Circular.
 

Scope of regulated activities

The consultation conclusions provide important clarifications regarding the scope of the new regimes:

• VA advisory services: The regime will cover any person carrying on a business in Hong Kong that advises on the acquisition or disposal of VAs or publishes VA-related analyses or reports intended to support investment decisions.

• VA management services: The VA management regime will cover any person who carries on a business in Hong Kong in providing a service of managing a portfolio of VAs for another person.

The consultation conclusions also clarify that tokenised securities are expressly excluded from the definition of VAs for the purpose of these regimes. This means activities relating to tokenised securities will continue to be regulated under the existing SFO framework.

Key requirements

The consultation conclusions outline several key requirements for regulated entities:

Financial requirements:

• Minimum paid-up share capital: HK$5 million

• Minimum liquid capital: HK$100,000 for firms not holding client assets, or HK$3 million for firms holding client assets.

Licensing conditions:

The SFC will have the power to impose additional financial resource requirements on licensees as needed.

Pre-application discussions:

Existing and prospective VA advisory and management service providers are strongly encouraged to engage with the SFC early. Pre-application discussion can help firms better understand the proposed regimes, facilitate more efficient licensing processes, and prepare for regulatory compliance under the new regimes.
 

Regulation of "finfluencers"

The SFC is deepening its understanding of the operations of financial influencers ("finfluencers") and considering the risks and opportunities they present to the market.

The SFC will conduct a comprehensive review of the existing regime under the SFO and the proposed VA service provider licensing regime to ensure they can adapt to evolving market developments. If a comprehensive framework covering finfluencers is proposed, the SFC will conduct further consultation accordingly.

Next steps for firms

Firms are strongly encouraged to:

• Initiate pre-application discussions: Early engagement with the SFC is highly recommended to better understand the proposed regimes and support smoother licensing processes.

• Prepare for transition: Existing firms operating under the SFC-HKMA Joint Circular should prepare for the transition to the new standalone AMLO-based regimes.

• Monitor legislative developments: The bill is expected to be introduced into the Legislative Council in 2026. Industry participants should stay informed of further developments.

These regimes are expected to complete Hong Kong's comprehensive regulatory framework for VAs, spanning dealing, custody, advisory, and management services.

How can Ocorian can help

We can help you transition into a compliant, well-governed operating model that meets the evolving SFC expectations. Our support includes:

• Conducting impact and gap assessments to determine whether your firm’s activities fall within scope

• Advising on the appropriate licensing strategy under the new standalone AMLO regimes

• Designing and enhancing control frameworks, governance structures, and risk management processes

• Developing policies and procedures for VA advisory and portfolio management

• Supporting licence applications and remediation programmes, where required

If your firm is assessing the impact of Hong Kong’s new virtual asset licensing regimes, we can help you navigate regulatory expectations and prepare for licensing. Get in touch to discuss your strategy, gap analysis or application readiness.

About the authors

Joanne Hui is a principal consultant at Ocorian specialising in SFC regulations for capital market firms. She has over 20 years’ experience across listing enforcement, IPO policies, forensic accounting, dispute advisory, tax consulting and regulatory compliance in Hong Kong.

Clarissa Lam is the practice lead for Ocorian’s regulatory & compliance team in Hong Kong. She specialises in regulatory compliance for asset managers and banks, advising local and global institutions on AML/CFT, client onboarding, suitability, FMCC and licensing requirements.