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

MetaEraJun 28, 2025
On June 28th (UTC+8), 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 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-scale transactions, will be required to apply for a license from the SFC. This is equivalent to including virtual asset over-the-counter (OTC) platforms under regulation, and the requirements are much stricter than the requirements for virtual asset OTC platforms to apply for licenses from customs during last year's consultation. At the same time, the consultation documents also mention that the law will not have a transition period or be considered as already licensed when it comes into effect. 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. (Source: Ming Pao) [MetaEra]
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Operating digital asset trading and custody services in Hong Kong without a license is punishable by up to 7 years in prison.

MetaEraJun 28, 2025
On June 28th (UTC+8), 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 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-scale transactions, will be required to apply for a license from the SFC. This is equivalent to including virtual asset over-the-counter (OTC) platforms under regulation, and the requirements are much stricter than the requirements for virtual asset OTC platforms to apply for licenses from customs during last year's consultation. At the same time, the consultation documents also mention that the law will not have a transition period or be considered as already licensed when it comes into effect. 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. (Source: Ming Pao) [MetaEra]
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