Authors: Carl Fernandes, Kishore Bhindi, Natalie Lam, Clara Hackney

Hong Kong Proposes New Licences for Virtual Assets Dealing and Custody

The Financial Services and the Treasury Bureau and the Securities and Futures Commission have jointly issued two public consultations; one paper proposing a new and comprehensive regulatory and licensing framework for virtual assets custodian services in Hong Kong, and another introducing a new, broad licensing and supervisory regime for persons and businesses dealing in VA. Both regulated firms currently offering VA activities, as well as those who are presently unregulated, will be affected by the proposals and will need new licences.