Hong Kong regulators will implement licensing regimes for crypto dealers and custodians after consultations. The new framework requires firms providing crypto services in Hong Kong to obtain licenses. Hong Kong has rejected more crypto exchange license applicants than it has approved. The city aims to establish a comprehensive regulatory framework for digital assets.

Hong Kong aspires to become a crypto hub, leveraging its financial hub status and business-friendly tax regimes. The city is testing tokenization initiatives alongside crypto licensing rules. The new licensing regimes aim to build a trusted and competitive ecosystem for digital assets. The CEO of the SFC believes this will help Hong Kong stay competitive in the global digital asset market.

The SFC seeks public feedback on proposals for licensing regimes for crypto advisory and management service providers. The consultation paper aligns with Hong Kong’s existing AML framework and Counter-Terrorist Financing Ordinance. Feedback on licensing scope, regulatory powers, sanctions, and appeal arrangements will help finalize the proposals.

Read more at Cointelegraph: Hong Kong to Roll Out New Licensing Requirements