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

TechFlowJun 28, 2025
On June 28, Hong Kong's Ming Pao reported that 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 virtual currency transactions, withdrawals, or fiat currency exchanges, or for 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, and the requirements are far stricter than those proposed in last year's consultation, which required virtual asset OTC platforms to apply for a license from the Customs and Excise Department. At the same time, the consultation documents also mention that the law will not have a transition period or be considered to have a licensing approach. Non-compliant operators must immediately close down, and operating without a license can result in a maximum fine of 5,000,000 yuan and imprisonment for 7 years. [深潮 TechFlow]
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Operating virtual asset trading and custody services in Hong Kong without a license carries a maximum sentence of 7 years.

TechFlowJun 28, 2025
On June 28, Hong Kong's Ming Pao reported that 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 virtual currency transactions, withdrawals, or fiat currency exchanges, or for 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, and the requirements are far stricter than those proposed in last year's consultation, which required virtual asset OTC platforms to apply for a license from the Customs and Excise Department. At the same time, the consultation documents also mention that the law will not have a transition period or be considered to have a licensing approach. Non-compliant operators must immediately close down, and operating without a license can result in a maximum fine of 5,000,000 yuan and imprisonment for 7 years. [深潮 TechFlow]
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