Finally, Hong Kong has completed what was missing in its cryptocurrency regulatory puzzle. For years, we have seen rules for retail trading platforms, but the true pillars of the infrastructure – custodians and dealers – operated in a gray area. Now, the SFC and the FSTB have closed this gap with a new licensing system that truly changes things.

What strikes me is the philosophy behind it: same business, same risks, same rules. It’s not just an empty slogan. The new licenses for virtual asset dealers and custodians follow the same strict standards as traditional finance Type 1. Custodians in particular must demonstrate they securely manage private keys – the core of fund protection. This is no small matter.

Hong Kong has chosen an interesting path: engaging with companies before finalizing the rules. Those “pre-application discussions” give early entrants a real advantage, allowing them to prepare without surprises later. Meanwhile, they are already working on the next phase – virtual asset advisors and asset managers. In short, they are building a system where every piece of the chain, from custody to execution, is carefully monitored.

Julia Leung of the SFC clearly stated: Hong Kong wants to remain a global leader in the development of the digital asset market, creating a reliable and competitive ecosystem. Christopher Hui added that the new regime strikes a balance between market development, risk management, and investor protection.

And it’s not just Hong Kong moving. Spain is implementing the MiCA framework with a deadline of July 1, 2026, Russia is taking a more practical approach to investment limits. By 2026, cryptocurrencies will no longer be a no-man’s land – they will become an authorized and highly supervised sector.

This move by Hong Kong truly marks a new era. They are not just regulating consumer platforms; they are regulating the invisible infrastructure – the one that true institutional investors have been demanding. They are filling gaps in custody, operations, and advisory services. It’s the kind of move that attracts serious capital.