- Hong Kong’s ASPIRe roadmap includes 12 initiatives to grow its virtual asset market.
- SFC plans new licensing frameworks for OTC crypto trading and asset custodians.
- Hong Kong aims to expand token listings and crypto derivatives for professionals.
Through its new roadmap, the Securities and Futures Commission of Hong Kong (SFC) outlined a comprehensive strategy to establish Hong Kong as a global virtual asset hub. The ASPIRe project introduces a structured approach to advancing digital assets while ensuring security and regulatory compliance. The roadmap groups 12 initiatives into five core sections: Access, Safeguards, Products, Infrastructure, and Relationships.
Strategic Pillars of Hong Kong’s Virtual Asset Roadmap
The ‘Access’ pillar aims to improve market entry by introducing licensing frameworks for over-the-counter (OTC) trading and custodians. By providing clearer guidelines, the SFC seeks to streamline the entry process for global liquidity providers. This will help strengthen Hong Kong’s position in the competitive virtual asset market. The ‘Safeguards’ pillar focuses on refining operational and compliance measures to enhance investor protection and address potential risks in the market.
The ‘Products’ pillar aims to develop more token options alongside derivative trading. This plan aims to expand virtual asset market choices and present investors with multiple investment options. Under the “Infrastructure” pillar, the framework supports market integrity by upgrading technology systems to keep market oversight modern. Through the ‘Relationships’ pillar, the SFC collaborates more effectively with virtual asset businesses to refine existing rules and maintain open communication.
Key Regulatory Initiatives and Future Plans
In 2023, the SFC created its first Virtual Asset Trading Platform licensing system and granted operating permits to major platforms like Bullish and HashKey. The SFC plans to make more detailed rules for OTC trading and virtual asset custodians. Hong Kong is committed to maintaining a transparent regulatory framework that evolves with market dynamics.
The roadmap outlines the SFC’s plans to refine regulations for new token listings and crypto derivatives. For now, only Bitcoin and Ether are legally available for retail trading. However, the SFC is considering expanding the regulatory framework to include new tokens for professional investors and to explore crypto derivatives. The introduction of staking regulations will also be studied to address client asset custody and associated risks.
Related: Hong Kong’s Stablecoin Race: Standard Chartered Takes a Lead
Hong Kong’s Growing Role Amid Regional Competition
Hong Kong operates in an environment of enhanced regulatory oversight, which drives increased competition between Asian markets with special attention to Singapore. These cities follow different methods to establish rules for virtual asset exchanges despite maintaining strict regulatory frameworks.
Experts believe that the efficiency of licensing processes and the flexibility of regulatory policies will determine which city becomes the leading virtual asset hub. In addition to its regulatory efforts, Hong Kong aims to reduce barriers for global liquidity providers and encourage more international players to engage with local platforms.
