Hong Kong plans to widen its regulation of the digital asset sector with a new licensing framework that would cover more than trading platforms alone. The government said it will submit amendments to relevant ordinances within the year to establish rules for virtual asset trading, custody, advisory and management services.
The timetable was outlined on Oct. 5 by Christopher Hui, Hong Kong’s secretary for financial services and the treasury, during a policy briefing for the Legislative Council Panel on Financial Affairs. The proposed changes form part of a broader financial market strategy running from 2026 to 2030.
Expanded scope for virtual asset oversight
According to Hui’s briefing, the planned regime would extend licensing requirements across several segments of the virtual asset business. In addition to trading, the framework is intended to cover custody, advisory and management activities, signaling a broader regulatory perimeter for firms operating in the sector.
The government said it will bring forward amendments to the relevant ordinances within this year. The source material does not specify which ordinances will be amended or when the proposed framework would take effect after submission.
Part of a longer-term financial strategy
The licensing initiative sits within Hong Kong’s fintech innovation policy under its 2026-2030 financial market development strategy. Officials have linked the effort to the territory’s wider goal of reinforcing its standing as an international financial center while building new sources of growth for the financial industry.
In that context, the proposed virtual asset rules appear to be positioned as both a market-development measure and a regulatory update. The government has not, in the source material provided, given further details on how licensing standards will be structured for each category of service.
Review of AI-related fraud controls
Alongside the digital asset regulatory push, the government is also reviewing legal changes aimed at improving the detection and removal of fraudulent content that misuses artificial intelligence. The review is being carried out as Hong Kong updates its approach to virtual asset regulation.
Officials said the government plans to work with the Hong Kong Monetary Authority to strengthen response systems across the technology and telecommunications industries. The source article does not provide a timeline for those legal changes or detail what new powers or obligations might be introduced.
What is confirmed next
The clearest next step is the planned submission of ordinance amendments within the year. For now, that is the main confirmed milestone from the Oct. 5 briefing to lawmakers.
Beyond that, the government has signaled two parallel tracks: drafting the broader licensing regime for virtual asset services and continuing its review of measures to address fraudulent AI-generated content. More specific implementation details have not yet been outlined in the source material.
Source: en.bloomingbit.io