Operating virtual asset trading and custody services in Hong Kong without a license carries a maximum sentence of 7 years.

ForesightNewsJun 28, 2025
According to Hong Kong's Ming Pao, the Hong Kong Securities and Futures Commission (SFC) and the Financial Services and the Treasury Bureau (FSTB) have published consultation papers proposing legislation to establish a licensing system for digital asset (i.e., virtual asset) trading and custody service providers. The documents mention that operators of virtual asset services, whether for small-scale Cryptocurrency transactions, withdrawals, and fiat currency exchanges, or complex activities such as brokerage and large transactions, will be required to apply for a license from the SFC. This effectively brings virtual asset over-the-counter (OTC) platforms under regulation, with requirements far stricter than those proposed in last year's consultation, which involved virtual asset OTC platforms applying for licenses from customs. The consultation papers also mention that the law will not have a transition period or be considered licensed upon its enactment. Non-compliant operators must cease operations immediately, and operating without a license could result in a maximum fine of 5,000,000 yuan and imprisonment for 7 years. [Foresight News]
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Operating virtual asset trading and custody services in Hong Kong without a license carries a maximum sentence of 7 years.

ForesightNewsJun 28, 2025
According to Hong Kong's Ming Pao, the Hong Kong Securities and Futures Commission (SFC) and the Financial Services and the Treasury Bureau (FSTB) have published consultation papers proposing legislation to establish a licensing system for digital asset (i.e., virtual asset) trading and custody service providers. The documents mention that operators of virtual asset services, whether for small-scale Cryptocurrency transactions, withdrawals, and fiat currency exchanges, or complex activities such as brokerage and large transactions, will be required to apply for a license from the SFC. This effectively brings virtual asset over-the-counter (OTC) platforms under regulation, with requirements far stricter than those proposed in last year's consultation, which involved virtual asset OTC platforms applying for licenses from customs. The consultation papers also mention that the law will not have a transition period or be considered licensed upon its enactment. Non-compliant operators must cease operations immediately, and operating without a license could result in a maximum fine of 5,000,000 yuan and imprisonment for 7 years. [Foresight News]
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