The warning came as Hong Kong consults on new virtual asset advisory and management licenses, expanding oversight beyond crypto trading platforms.
The Hong Kong Securities & Futures Professionals Association (HKSFPA) warned that the city’s proposed rollout of new crypto licensing regimes may unintentionally force compliant crypto managers to cease activities if regulators proceed without transitional arrangements.
The warning centers on what the group described as a potential “hard start,” under which existing firms would be required to be fully licensed by the commencement date of the new rules or cease regulated activities while their applications are under review.
Hong Kong’s Securities and Futures Commission and the Financial Services and the Treasury Bureau are currently consulting on new licensing regimes that cover virtual asset dealing, advisory and management services, which would expand regulatory oversight beyond the city’s existing framework for crypto trading platforms.
