Hong Kong's Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) published consultation conclusions for licensing regimes governing virtual asset advisory and virtual asset management services under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
The consultation showed broad market support for the proposed regimes, with respondents largely agreeing with the policy direction under the “same business, same risks, same rules” principle. The framework aligns the scope of virtual asset advisory and management with existing regulated activities covering securities advisory and discretionary asset management, the SFC said in a statement on Tuesday.
Under the proposed structure, advisory services would capture business activities involving recommendations on the acquisition or disposal of virtual assets, while management rules would apply where firms exercise discretionary control over virtual asset portfolios.
The regimes also set baseline financial resources requirements, including minimum liquid capital of HKD 100,000 ($12,760) for firms not holding client assets, and up to HKD 5 million ($638,095) in paid-up capital alongside HKD 3 million ($328,862) in liquid capital where client assets are held.
