Operating virtual asset trading and custody services in Hong Kong without a license is punishable by up to 7 years in prison.

OdailyJun 27, 2025
According to a report by Ming Pao in Hong Kong, 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 the intention to require operators of virtual asset services, whether for small-scale activities like virtual currency trading, withdrawals, and fiat currency exchange, or complex activities like brokerage and large-scale transactions, 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 regarding 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 as already 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. [Odaily星球日报]
Source
Powered by ChatGPT
All You Need to Know in 10s
Your One-Stop Crypto Investment Powerhouse

Operating virtual asset trading and custody services in Hong Kong without a license is punishable by up to 7 years in prison.

OdailyJun 27, 2025
According to a report by Ming Pao in Hong Kong, 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 the intention to require operators of virtual asset services, whether for small-scale activities like virtual currency trading, withdrawals, and fiat currency exchange, or complex activities like brokerage and large-scale transactions, 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 regarding 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 as already 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. [Odaily星球日报]
Powered by ChatGPT
Scan QR Code to Explore more key information
One-stop financial research platform for Crypto Investors