Key Points:
- Hong Kong SFC introduced the “A-S-P-I-Re” framework to enhance virtual asset market oversight while balancing innovation and risk management.
- The plan also includes 12 regulatory measures, such as improving licensing and overseeing OTC and custody services.
The Hong Kong Securities and Futures Commission (SFC) has introduced a new regulatory roadmap, “A-S-P-I-Re,” aimed at enhancing oversight of the virtual asset market while balancing innovation and risk management.
Read more: Hong Kong Asia Holdings Sees 340% Share Surge After Buying “One” BTC
Hong Kong SFC Launches New Virtual Asset Regulatory Framework With 5 Pillars
Since 2018, Hong Kong SFC has implemented several regulatory measures, including the Virtual Asset Trading Platform (VATP) license and Asia’s first spot exchange-traded funds (ETFs) for digital assets. However, challenges such as liquidity fragmentation, regulatory arbitrage, and investor protection remain pressing concerns.
The “A-S-P-I-Re” framework consists of 5 key pillars: Access, Safeguards, Products, Infrastructure and Relationships. The initiative comes as the global virtual asset market surpassed $3 trillion in 2024.
The roadmap also outlines 12 measures, including optimizing the licensing system, increasing oversight of over-the-counter (OTC) and custody services, evaluating derivatives and staking for professional investors, and bolstering cross-border cooperation.
Boosting Hong Kong’s Position as a Digital Asset Hub
In a bid to reinforce its regulatory framework, the Hong Kong SFC plans to hire 15 new personnel in the 2025–26 financial year, with eight roles dedicated to virtual asset regulation.
Additionally, Reuters reported that Hong Kong is considering permitting derivatives trading and margin lending in virtual assets for select investors, a move designed to enhance the city’s competitiveness as a digital asset hub.
Earlier this year, Hong Kong authorities confirmed that applicants for the wealth migration visa could use cryptocurrency holdings to demonstrate their net worth.
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