As per Cryptonewsland, Hong Kong will introduce licensing rules for virtual asset dealers and custodians to strengthen market oversight. The new framework, finalized by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC), requires companies offering crypto trading or storage to obtain licenses. The regulations aim to close regulatory loopholes and bring over-the-counter trading, brokerage, and third-party custody under supervision. Dealers must meet minimum capital requirements, separate client assets, and use licensed custodians. Custodians handling private keys will also need a dedicated license with higher capital requirements. Advisory and management service providers will be included under the licensing regime, aligning them with traditional finance supervision.
Hong Kong to Mandate Licenses for Crypto Dealers and Custodians
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Summary
Hong Kong will require licenses for virtual asset dealers and custodians to tighten oversight of liquidity and crypto markets. The FSTB and SFC finalized rules mandating licenses for trading, custody, and advisory services. Dealers must meet capital requirements, separate client assets, and use licensed custodians. Custodians managing private keys face stricter capital rules. The framework also supports Countering the Financing of Terrorism efforts by bringing OTC trading and third-party custody under supervision.
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